7 Upgrades That Probably Aren’t Worth Making in Your Investment Property
Whether you’re buying a new investment property in Silicon Valley or you’re selling one, you may be kicking around the idea of making repairs and upgrades – but don’t open your wallet just yet. Experts say that these seven upgrades and repairs probably aren’t worth making in either case.
7 Upgrades That Probably Aren’t Worth Making in Your Investment Property
Check out these seven upgrades and repairs that probably aren’t worth making in an investment property:
- Building a garage
- Buying a new HVAC unit
- Adding a fireplace
- Building in higher ceilings
- Adding a bedroom
- Putting in an above-ground swimming pool
- Building an in-law suite
Naturally, you should talk to your REALTOR® if you’re considering making these improvements before you sell. Your agent can tell you what works – and what doesn’t – on today’s market. In the meantime, here’s a closer look at each.
Building a Garage
Though most people do want garages, and adding one may mean that you can increase the asking price for the house you’re selling, the cost may not be worth it. On average, it costs $44,210 to build a garage in the state of California – so unless you can increase your asking price by at least that, it’s probably not worth the hassle.
Buying a New HVAC Unit
Unless the HVAC system in the house is on its last legs, it’s probably not worth replacing to sell your property. However, if you’re buying a property and it’s got a struggling HVAC system, you can – and probably should – ask the seller for a credit, because you may be saddled with the cost of replacing it sooner than you think.
Adding a Fireplace
Fireplaces do add to a home’s resale value, but they’re expensive to install – and they may not bring you the return on investment you’re looking for. Installing a masonry fireplace can cost between $5,000 and $10,000, which means that although it can be a selling feature, it’s unlikely to bring in enough to justify the money you parted with.
Building in Higher Ceilings
Building in higher ceilings can allow you to increase the property’s asking price, but this one hinges on several factors – including how high the ceilings already are. It wouldn’t make much sense to increase 8-foot ceilings by a foot, but if your ceilings are oddly low, it may be worth looking into.
Adding a Bedroom
An additional bedroom results in about a 4 percent increase on a home’s price – but the cost definitely isn’t justified. On average, it costs between $75,000 and $95,000 to build an entirely new bedroom (and if you use high-end materials, your cost will skyrocket from there). That doesn’t mean you shouldn’t repurpose a bonus room, though; you should talk to your REALTOR about how to market your bonus room and whether it makes sense to sell it as a bedroom or something else (such as a home gym or home office).
Putting in an Above-Ground Swimming Pool
Above-ground swimming pools can cost around $10,000 to install – but they don’t increase a home’s resale value. (In-ground swimming pools do, so if that’s something you’re considering, you should talk to your REALTOR about whether it’s a worthwhile investment.)
Building an In-Law Suite
In-law suites are expensive to add; a quality one can run you up to $50,000. Though they may increase the home’s value slightly, consider the fact that your space will be under construction for a while -and adding such a big component to the home can put off your sale for quite some time.
Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?
If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.
If you’re also looking for a new multi-family property for sale or another type of home, check out our:
