I'm curious about the experiences of others when it comes to making upgrades to a house that's not in the best location. I live on a busy street, and although we've made some improvements to help with noise, I know it can be a turnoff for potential buyers. The house has been through a lot; it was purchased from a flipping company and we bought it at the end of 2021. Since then, we've spent about $50k fixing various issues, such as replacing the roof and getting a new chimney liner, and we haven't even tackled the kitchen or bathrooms yet, where I know we could see a better return on investment (ROI). Considering we're looking to move in the next 5 years, I don't want to pour $75k-$100k into the house only to find out I can't sell it for that amount later. We bought the house for $289k and Zillow suggests it's worth $360k, but I've heard these estimates can be misleading. Has anyone else faced a similar situation?
2 Answers
If you've got the budget and plan to stay a while, go ahead and make improvements that will make you happy to live there! But if you're on a tight budget or not planning to stick around long, focus on upgrades that offer the best return on investment relative to your neighborhood. Pay attention to things like cosmetic fixes that can boost curb appeal without breaking the bank. I personally wouldn't risk overspending in a neighborhood where houses are valued lower than your improvements would suggest.
I totally get where you're coming from! I purchased a house that needed a lot of work too, but luckily mine was not a total teardown. I’ve spent around $40k upgrading my place, and the improvements have definitely added value. It sounds like if your foundation and structure are solid, your upgrades will enhance the appeal for future buyers. Just check out what similar homes in your area have sold for to gauge if those renovations could pay off for you in the long run. Remember, you should enjoy the upgrades while you live there too—5 years goes by faster than you think!
Thanks for sharing! I'm finding it tough to compare my house since it's bigger and on a busy street, but I'm trying to do what I can to make it livable and enjoyable. I think I need to learn some DIY skills for those bigger renovations to save money!