New Bathroom Or Kitchen Which Is A Better Investment?
Q: Gerald, I just had twins and it’s clear to me and my husband that we need a bigger place to live. We were thinking about putting in a new bathroom before we sell our current house so we can fetch a higher price. How much will a new bathroom increase our home’s property value?
A: Hi Tina, that’s a great question, and I understand why you’d want to do everything you can to get top dollar when you sell your home. However, home renovations are generally not good investments because your return is lower than your renovation costs even in the 1st year after the renovation. While kitchens normally return a slightly higher amount than bathrooms (about $.65 to $.70 for every dollar invested on average versus about $.60 for every dollar invested for bathrooms, you may need to renovate or put in a new bathroom to make your house competitive with other houses that are on the market for sale in your area-it depends on the condition of your bathroom. A great way to find out the kind of competition you’re up against is to go out and look at other similar homes that are for sale in your area before you put your property on the market. My advice to you however is that unless your current bathroom is totally outdated or in really bad shape, it probably isn’t wise to plow a lot of money into a new bathroom before you sell. Thanks for your question, Tina & good luck. For more real estate tips and for information on my real estate coaching program, visit performanceproperty.com. I’m Gerald Lucas and I’ll see you again soon.