What's the difference between a home upgrade and home maintenance?
I always ask home buyers and sellers about home maintenance and home upgrades.
Buyers are quick to classify things like granite countertops as upgrades but sellers tend to also include things like replacing the roof or furnace.
So in the spirit of the last weekend of the fall parade of homes, let's look at it from literal definitions and a new construction standpoint.
The definitions of the word upgrade include:
noun -an increase or improvement; a new version, improved model, etc., an increase or improvement in one's service, accommodations, privileges, or the like, something, as a piece of equipment, that serves to improve or enhance:
verb (used with object), upgraded, upgrading. -to promote to a higher grade or rank, to improve or enhance the quality or value of
verb (used without object), upgraded, upgrading. -to improve the quality, value, effectiveness, or performance of something
The definitions of the word maintain include:
verb (used with object) -to keep in existence or continuance; preserve; retain:, to keep in an appropriate condition, operation, or force; keep unimpaired: to maintain order, to keep in a specified state, position, etc.:
We can see where the lines may get blurred when simply looking at the word upgrade but when compared to maintenance the lines become more clear.
So practically speaking if the home requires a roof then simply replacing the old roof is maintenance, not an upgrade. However, if you choose a roof that is of higher quality, then it's an upgrade. Good maintenance is important to selling as it can affect how many buyers your home will be marketable to when considering loans your home qualifies for. (See FHA LOAN APPRAISAL GUIDELINES and check out condition requirements.)
Let's touch on upgrades in new construction.
Now, all builders differ in what they considered standard or upgraded based on their own business model and standards. Some neighborhoods are considered upgrades over other neighborhoods and therefore the basic standard is generally higher in the upgrade neighborhood. This is where it is critical to at least consider how neighborhoods with "open builder" differ from neighborhoods consisting solely of one builder or a couple comparative builders.
For some builders, simply adding a light fixture to the ceiling of a room is an upgrade... and at least an added expense for most.
It's also important to consider what upgrades are worth doing upfront and what items you can skip to save money and not risk appraisal issues.
Thinking about buying new construction? Check out these links:
Selling a house? Check out these articles:
How can you correctly price your home for sale?
Things that do NOT factor into home values
