Home Renovations: Do they make sense?

There is never much on the television these days so I find myself watching HGTV (Home and Garden TV) quite a bit these days dreaming about that day when I finally get to live in a house (I have only ever lived in an apartment up to this point.) Anyways, I have never read anything that says you get the money you put into your house out of it. See here, here, and here.

For example, if you put $100 into fixing up your kitchen, if you sell the house (soon) you’ll get $75 or $90 back depending on if you do it yourself or pay someone else to do it. The ROI on fixing your kitchen is 90% as stated

On the show called “Designed to Sell” designers come into people home’s for sale and spend money renovating them so that they will sell for more. And they invest thousands to change the house and improve it. So what I don’t understand is, that if they are going to invest $5000 to raise the price of the home by $4000, why is that a good thing? If you never get 100% of your money back out of a renovation, why do you want to renovate the house?

As a buyer, I’d rather pay less and have the option of

a) renovating the house in a way that fits me (instead of HGTV designers)

- or -

b) not renovate at all and save myself the $4000
So as I see it, both the buyer and seller lose out. I guess the show exists purely as entertainment, not an example of what to do in the real world?

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This post was written by:

Ben Bennett - who has written 34 posts on The Freedom Factory.

Ben Bennett is not your typical hardworking American man. He's an extremist. Whether he's pushing his body to the extreme (5 marathons, 3 triathalons), pushing his portfolio to the extreme (value investor averaging 30% growth per year for 10 years running), or pushing his budget to the extreme (lives on less than most spend on clothes each month), Bennett believes life is best lived when you're constantly pushing yourself to new heights.

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