Cost vs Value: Upgrades

This week’s subject is Upgrades. An upgrade will be defined for our purposes as a decision to replace an existing serviceable item with a significantly more desirable item. The wording is deliberate, because an upgrade can be quality, style, fashion, technology, decoration, curb appeal, functionality, etc, etc,…you get the idea. So, let’s limit the subject as follows: replace an existing serviceable item with a “better” item that is not a replacement of a deficient item, nor is it a correction of a problem.
Before we talk about specifics, there are also some general rules that apply to this category. One that I think is important is to be logically consistent throughout the house. You want the house to present a uniform feeling of quality to the potential buyer. What I’m suggesting is that it will probably be better to distribute your upgrade budget uniformly and do a modest upgrade of both bathrooms rather than a relatively extreme upgrade of one and nothing to the other. Further, the same is true within each room. Don’t spend all your upgrade dollars on fashionable bathroom plumbing fixtures, and keep the inexpensive vinyl flooring.
Again, as we’ve discussed before, your upgrades have to also be consistent with the overall value of the house, the neighborhood it’s in, and the demographic of your likely buyer. If, for these reasons, your house is likely to appeal to a first time homebuyer or an investor, you should target your quality level accordingly. Your goal is to increase the overall appeal of your house. If your upgrades increase your price in a market segment that is looking for affordable housing, you may have reduced your appeal.
When considering a specific project, keep in mind that the value of an upgrade might not be directly proportionate to expense. We excluded luxury upgrades from our discussion in an earlier article, but this is just a reminder that the most expensive item is not always the best value. The intangibles I’m talking about here probably go by the names balance and good taste. If you are not confident in your ability to demonstrate these intangible qualities as they apply to the upgrades you are considering, seek the advice of a professional. This can be an expensive lesson to learn the hard way.
We’ll use three specifics to focus the discussion: Flooring, countertops, and doors.
Many builders are trending towards more hard surface flooring such as tile or hardwood, and away from wall-to-wall carpeting. This is a lucrative area for upgrades. The overall appeal of your home can be enhanced with the creative use of available floor coverings. Carpet can still be used selectively in certain rooms and for specific purposes such as inlaid into a hardwood frame in a formal living room. These are, of course, matters of taste. A good quality carpet can also be an upgrade in certain situations. Fashionable homes are also making extensive use of larger size tile, and in large areas such as entries, bathrooms and utility rooms.
Similarly, upgraded counter tops have become so common as to almost be a cliche. Many stone or simulated stone products are available that give a dramatic appearance to the kitchen or bathroom. While laminate or even tile surfaces are attractive and functional, they often lack the appeal of Granite or Corean. When done in concert with other aspects of the kitchen, bathroom or utility room, these upgrades are likely to pay off for you.
Upgraded doors are a simple way to add elegance to your home. For a relatively small investment you can replace those hollow core doors with stylish six-panel, cheerfully painted doors. The results will be a pleasing look that extends to every room.
When done tastefully and uniformly, selecting these upgrades can substantially improve the overall appeal of your home, and put money in your pocket.