ROI: Fun with numbers
Commenting on Tip On Getting The Best Return On Home Improvements. For some reason this just tickles my funny bone.*
Let's say I decide to sell (it's not time yet... but this is all hypothetical). Tip #1 here says:
1. Clean / de-clutter - 973% Average Return on Investment: Remove clutter by storing items in basement, attic or friend’s home. Rent a storage space or sell excess items, if needed. Keep every room very clean during open homes. Do pre-open house cleanliness inspections.
Wow. 973% return. That just begs for a closer examination.
Let's say I decide to rent a storage space. Frankly I have no idea how much that costs. Let's say it costs $10.
Cost: $10
Estimated Return: $9730
That's extra cool! I could do with an extra $10K after closing.
Let's say instead that I decide to stash all my stuff in the crawlspace. Not a bad plan as long as I empty it out before the home inspection.
Cost: $0
Estimated Return: $0
Hrrm. Not as exciting as the almost-$10K above.
Ok, I know. I'll sell it all on Craigslist and Ebay. I have no idea how much my clutter is worth. Let's pretend I have a teeny weeny little bit of clutter (yeah, right)(I said it was a hypothetical *sheesh*).
Cost: - $10 ( I sold it.. so I earned $10. Negative cost).
Estimated Return: - $9370
Ok. Well that sucks.
Obviously the correct answer is to get the biggest storage unit possible for the longest amount of time possible.. and to pay for a maid service... and a dog groomer. I'm pretty certain that with nearly 1000% return I can double my house value in no time. :)
* I wish to state clearly that clutter clearing and general cleaning are great low-cost ways to improve the selling price of your house. Please don't allow my levity to convince you otherwise. I also wish to state that I don't care what any silly article has to say.. the replacement of the front door was -so- worth it. Yes, I'm still giddy about it.
Tags: Musings
Comments
Yes, this sort of logic is along the same lines as "The more you spend, the more you save"
Where the heck did they come up with 973% any way? Why not just say 1000% and then there will be no doubt that it is nothing but meaningless hyperbole.
Posted by: Greg | June 19, 2006 3:25 PM