Subtraction by Addition
Thinking about doing a large remodel or addition? Are you justifying the expense with the belief that you’ll get that money right back out of the house when you sell it? Be careful. You might just discover you’re losing money – subtraction by addition.
There are many inexpensive fixes, updates, repairs, etc. you can do to your home and expect to get your money back after selling your house. The key in today’s economy is fixing what you already have rather than adding. Of course home buyers love more space, but that sunroom addition or garage addition may not equate to the return you are expecting down the road.
Anytime you add onto a home, increasing the footprint of the structure, you should see dollar signs flashing before your eyes, and I don’t mean money going into your pocket. Think about your reasoning for the addition. Is this something your family needs? Do you only have one bathroom for your family of five? That expense might be justifiable. But is a new master suite built off the back of the house a good decision? How long are you going to be around to enjoy the new space? Over-improving compared to the rest of the neighborhood is another recipe for diminishing returns.
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