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Updated over 1 year ago, 07/22/2023
Renovations for selling a house- How to determine return on investment
I have never sold a home, but I am considering selling one of my long-term rental single-family homes which needs some repairs and updating. I don't know how to figure out which renovations are worth doing to get good return on investment if I sell. What research, metrics or people should I contact to understand this?
The property needs a new roof and landscaping retaining wall, some repair and paint to the deck, and all of the exterior door frames need to be fixed/replaced. I will do these regardless of sale or hold.
My tenants are ok with keeping the existing worn-out carpet, but I would prefer to put in new luxury vinyl plank flooring, however, I'm not sure a new floor will be a good idea if I'm going to sell. How do I know that the cost of new flooring will pay off if I sell? The same with painting- I wasn't going to paint, and I'm not sure how to do painting with tenants in place, but a new buyer may prefer to pick their own colors and have that done themselves. Same with flooring- a buyer may want to choose their own.
I'd also like to know if any paperwork or receipts about renovations is usually required by a buyers' agent or lender, and if so, what they want to see.
I welcome any feedback on this.
Thanks!