Is it in my best interest to remodel my condo, I am not sure what to do?

Question

I have a condo in southern California, I could sell it for about $400,000 as it is 1650 square feet, 3bd/2.5 ba and has a yard and 2 car garage. It is pretty much a single family home, only it does not have a front yard and it has a condo ownership.

It is not attached to any other condos and looks like a regular home.

I want to do some light remodeling like a new kitchen, update the bathrooms, and replace the doors and tear down a wall. I have already done a few home improvements like a new patio, new vinyl windows and new paint, appliances and carpet.

My whole project will cost about $33,000 including labor and materials.

My wife and I plan to stay in the house since we have paid it off and it is in a good location in California.

Is $33,000 too much to invest in my condo? I could get 400k now and its not looking so hot. My reason for the updates is not for resell but to make our home more custom so we stay happy where we are.

Answer 1

I think every dime you put into remodeling in Southern California will be worth it. If you add $33k to your mortage, you most likely would raise your value to $50k. Plus, so many times people remodel to sell and don't stick around long enough to enjoy the fruits of your labor.

Watch HGTV's cable show "Designed to Sell". It will give you lots of low cost ideas that make a home more presentable and add value.

Do it!

Answer 2

If you were making the improvements to sell your home today, than I would say yes you are spending too much to update your home for sale. However, since you are planning to stay put, then any reasonable amount to provide the standard of living or comfort for you and your wife is o.k.
With the current market slowing an investment like this for the short term (3-5) would not be prudent if you plan to sell in this time frame because the expense would not be absorbed by appreciation. But in the long term the expense will likely be absorbed in appreciation being in California, and the updates in particular the updated kitchen and baths will be the selling features at time of sale over similar homes in your neighborhood.

Answer 3

Hi,

Assuming that you found the very best price for the remodling cost, only you can answer if $33k is too much or not.

Just a word of caution, get everything you want to do pre-approved with the association and city hall before doing any changes. You might need permits for changes inside and permission from association for things outside.

Regards