Natwerk Designs

How accurate are HGTV improvement predictions?

One of the shows has a realtor going around saying things like "the $4,000 you put into your bathroom will get you $10,000 in return." I don't see how in the world they can quantify such things. All properties are unique. Many "experts" are saying updated kitchens and baths do not get you more money, but they allow you to sell your homes quicker. How can they be so precise?

Public Comments

1. Um, sometimes they are talking specifically about the area you are in. For instance, take My home is worth what? On one show the realtor said that a pool would increase the homes value. On another show the realtor said that the pool would not increase the value at all. The difference, the first house was in Arizona and the second house was in like Tennessee. On that show I have also seen realtors say like your 4,000/10,000 thing and I have seen other figures too in different areas quoted. One premise they are going on is that Bathrooms and Kitchens sell homes. Now, that said, I don't know how close they are on those predictions are but, I think the advice to update the kitchen and the bathrooms is pretty true. But, an updated kitchen doesn't necessarily mean new cabinets and granite counter tops, but can be a coat of paint to make it look like 2008 instead of 1970. It is TV, take exact numbers with a grain of salt but, the general advice is sound.
2. The real estate expert may be talking about homes in their area. Yet, on the average, it is well worth the investment to update both the bathrooms and the kitchen before selling. Another less expensive way to get your returns is to take up the rugs and put down wood flooring. You really don't have to go all out on the changes, but don't be cheap about it either. But I seriously doubt you would ever get double your investment in return. Unless you're in a very expensive area in the first place.