Home Remodeling Return on Investment

So you know that you are going to sell your house. Of course you want to get as much as you can for your Arizona real estate. And now you are wondering which home improvement projects you can undertake will net you the most profit when you sell the house. Should you add a pool? How about remodel the kitchen? Or maybe we should just nip this in the bud right here.

Cold, hard facts: No matter what project you decide to undertake, your return on investment (ROI) will not be any greater than maybe 83%. In other words, you are losing in almost every case more than 17%! Seriously, let’s just take the swimming pool example. You go out and spend $15,000 for a new play pool (that’s a pretty bare bones pool in that price range). You might be able to expect to recoup $10,000 of that when the house sells. Simple math: That’s a $5,000 loss.

Does this mean that I am trying to talk people out of doing home improvement projects? Oh, heck no. In fact it is not uncommon to see me elbow deep in a home improvement project at any given time! If you think that you would get lots of enjoyment out of having one of those fancy custom backyard fire pits installed, then by all means do it! Just don’t expect that you will recoup the full amount that you spent when it does come time to sell your house.