Seller Math 101: If I put $5k into my home, will I get it back when I sell?

Welcome to Seller Math 101. Let’s discuss the age-old question: If I put $5k into my home, will I get it back when I sell?

The answer?

Hard maybe.

Let’s chat about seller math.

Unlike most equations, seller math isn’t consistent and it isn’t a science. Here are a few outcomes you may come across-

$5,000 in = $0 out
$5,000 in = $5,000 out
$5,000 in = $10,000 out (or more!)

Five thousand dollars is no small chunk of change. Spending it on your home might increase the sale price. But, it might not. It first depends on your market. Some home improvements will increase your sale price while others will simply sell your home faster. Sometimes you get both.

Here’s the best way we’ve found to look at this.

Are your improvements maintenance-related or cosmetic/lifestyle upgrades?

Maintenance-related improvements tend to be expected in the marketplace. For example, replacing the roof after a hail storm won’t necessarily increase your purchase price. But, it could help your home sell more quickly than the home down the street with an older roof. This is because there’s a level of expectation from prospective buyers that you’ve maintained the home throughout your ownership. Conversely, ignoring such a repair could hurt your sale price. Maintenance-related items aren’t always upgrades. I’d simply chalk this up to a basic cost of home ownership.

On the other hand, there are some relatively easy cosmetic improvements you can make to get the most out of your home sale. For example, updating paint, light fixtures, and hardware (think handles, hinges & faucets) can go a really long way. We recommend these upgrades often. As a result, many of our clients sell more quickly and for top dollar.

Each house and market has its own unspoken rules for how this works. Got questions? Give us a shout, or chat with your local real estate professional. Get advice on the improvements you plan to make and maximize that return!