Author Topic: DIY projects = home equity?  (Read 2744 times)

Kaplin261

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DIY projects = home equity?
« on: November 26, 2015, 06:25:20 AM »
I'm selling my home some time in the next 4 years. I have been doing little diy projects around my home that don't cost a lot.

Recently I bought a door that sells at home depot for $500, got it off of craigslist for $100. Installed it myself and had to spend $10 on a can of bondo to fix some minor dents, $30 worth of spray paint,about 16 hours worth of time sanding, priming,painting ,buffing and polishing. The door ended up with a gorgeous mirror finish.

Research on front door installs says the average cost is $1,000. More research says new front doors have a ROI of %80. Now it would sound crazy to say my home just went up in value of $800, however will I recoup the $140 invested when I sell the home?
« Last Edit: November 26, 2015, 07:14:09 AM by Kaplin261 »

GuitarStv

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Re: DIY projects = home equity?
« Reply #1 on: November 26, 2015, 06:40:02 AM »
Maybe?  It's not a sure thing at all.

House sales are funny.  Generally, making your home look and feel nicer to be in will lead to a higher sales price . . . but you also have to account for whatever the market you're in is doing, location, and how much your buyer happens to like the modifications you've made (people have very different opinions on style).  When people buy a house, they don't tick off items on a price list and come up with a final value.

To summarize, you may have improved the value of your house a little, or not at all.

TomTX

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Re: DIY projects = home equity?
« Reply #2 on: November 26, 2015, 07:32:16 AM »
ROI on a front door can be huge. First impressions are key for selling a house. It can also be negative.

Kaplin261

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Re: DIY projects = home equity?
« Reply #3 on: November 26, 2015, 07:41:56 AM »
Another question on the same subject, at what point does improving your home = no returns

Exflyboy

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Re: DIY projects = home equity?
« Reply #4 on: November 26, 2015, 10:25:34 AM »
Yeah generally doing DIY projects won't help increase value much.. Unless its a complete remodel and even then that's questionable.

TomTX

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Re: DIY projects = home equity?
« Reply #5 on: November 26, 2015, 10:41:04 AM »
Another question on the same subject, at what point does improving your home = no returns

Major projects (kitchen or bath renovation) is typically a negative return.

Basic repairs (hole in the wall) painting and new carpet (if needed) are going to usually be positive from a DIY perspective, or at least get more interest by making the house 'move in ready.' Updating crummy light fixtures/fans is usually good too and can be done cheaply. Trim the hedges, prune the trees, mow the grass, plant a bunch of cheap and cheerful flowers to catch the eye. Borrow a power washer and clean the driveway/patio (be CAREFUL on wood!!!) - stuff like that.

reader2580

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Re: DIY projects = home equity?
« Reply #6 on: November 26, 2015, 11:33:22 AM »
I think most of the negative ROI is because remodeling can cost a lot if done professionally.  You can DIY a complete kitchen remodel for $7,500 or so.  A bit more if you have to gut the walls to redo wiring or plumbing.  As long as it doesn't look like a DIY hack job you'll probably get back most of your investment on resale.  Probably not such if you spend $15,000 or $20,000 on a pro job.

TomTX

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Re: DIY projects = home equity?
« Reply #7 on: November 29, 2015, 06:31:56 AM »
Good point. A quality DIY kitchen is probably a slight positive if the old one was in bad shape.

The worst ROI around here seems to be a pool. It actually decreases value, most buyers don't want the hassle and risk. There are plenty of local community pools which would cost less for a couple of season passes than just the regular maintenance on a home pool, without even considering potential repairs, heating, etc.