We frequently receive calls from homeowners who are interested in remodeling their home to prepare it for sale. Frequently, the desire to make improvements is accompanied with an expectation that the investment will be recouped in the purchase price. Unfortunately, while improvements are likely to shorten the time that a house remains on the market, there are very few that will increase the sales price dollar for dollar. Indeed, the bigger the project, the more likely the cost of the project will greatly exceed the expected return.
For example, according to Remodeling Magazine’s most recent Cost versus Value Report, the expected return on a major kitchen remodeling project in the Atlanta market is only around 65% of its cost. This is why major projects are usually undertaken by homeowners that plan to stay in the home for an extended period of time and recoup their investment in part from the increased value of their home and the rest from the increased enjoyment of living in it.