Mark Hite
President, Greater Chattanooga Association of REALTORS®
Many home owners make investments in their homes, thinking they are upgrading the property, when in reality they are just completing required maintenance.
Much like replacing worn tires or a broken fan on your automobile, there are many such items in residential real estate. At the foundation of this topic are basic routine maintenance items, examples would include: cleaning gutters, having the Heat/air unit serviced and trimming shrubs away from the structure to prevent rotten wood. Performing these activities help to extend the life of structure/utilities but are not considered upgrades.
The second level of maintenance to consider are when items have worn out or broken. A leaking roof, a heat/air unit that is not in working condition or a broken dishwasher would be such examples. Unless otherwise stated in a real estate listing, it is assumed that working appliances and functional heating/air units would be included with any home. Addressing any of these nonfunctional or functionally obsolete items would again be considered maintenance. While a new roof or heat/air unit may help your home seller faster or for more money than a home with older features, they are still not considered an upgrade.
To consider these maintenance investments as upgrades, it is my opinion that they would need to be superior to what is expected in a similar house in the neighborhood/area. On the roof example, if the standard roof in the neighborhood is a basic “3 tab” and a home owner installs a 30-year architectural shingle, then this would considered an upgraded roof. If other homes have laminated countertops in the kitchen and the home owner installs solid surface countertops, then these would be superior to other homes and thus considered upgraded.
As you prepare to make investments in your home, whether required maintenance or contemplating an actual upgrade, be careful not to over improve for your neighborhood. To gain insight into what the norm is for your area and learn what the return may be on choosing to upgrade, consult an experienced member of the Greater Chattanooga Association of Realtors. They can help you make informed investment choices, based on what has been selling around you and the prices returned. Unless you are planning to enjoy the upgraded feature for a number of years, then generally it is best to invest to the neighborhood norm.