Laura asks…
What is the average ROI, expressed as a percentage of absolute dollars, of a permanent house improvement?
I own a home in new jersey. So far, we have new kitchen appliances, new floors in the entire downstairs(laminate kitchen, and wood dining and living rooms). new washer and dryer, and a new bathtub ( for my disabled wife, easy access. ) What is an average expected roi percentage?
James Conley answers:
Evry different type of improvement has different avg returns – some are 50%, some are 100% (increase in home value) – appliances are NOT improvements.
Why would you care if you are staying in teh house?
New floors don’t add much, since it’s just replacing what was there and the bathtub alone without a full bathroom remodel is very minimal also
I seriously doubt you added hardly added any “resale” value to the house and 10 yrs from now – those things will mean nothing – appliances will be nearing replacement age again and floors will then be 10 yrs old
most of that money spent was barely above regular maintenance and repair, not improvement
William asks…
Would you take Extended Warranty out on a Brand New Washing Machine or any other Kitchen Appliance?
I have just bought a new washing Machine and been Offered an Extended Warranty for £190 for 5 Years Protection against breakdown. It also gives New for old for life if it is beyond economical repair. Would you take out Extended Warranty?
James Conley answers:
I now don’t take out extended warranties for two reasons:
1. The cost of replacing the item is about the same as the cost of the warranty, and there is no certainty that you will need to make a claim in the five years.
2. These warranties often have a number of get out clauses, which you find out about when you make a claim, things like “I’m sorry, but that part isn’t covered” or “We aren’t going to entertain this claim because we think the machine is broken because of your negligence”.
Imagine how you’d feel if your claim was refuted, or how you’d feel if the machine broke down after five years and three months. You’d do much better to take your £190 and tuck it away in a high interest account somewhere that you could withdraw it IF you needed to buy another washing machine or pay for a repair.
Remember that the machine is already guaranteed by the manufacturer for at least the first year anyway, so you’re paying for nothing to start with.
Daniel asks…
New kitchen appliances – any bad experiences with Sears?
I just bought all new GE Profile appliances from Sears. I opted not to purchase the service plan. Has anyone had a bad experience with them? Or a great one and would recommend the service plan? Thanks!
James Conley answers:
I have only had problems with less than intelligent repair people. My sister always buys Sears even tho’ their products are more expensive. There’s a great email going around the internet about dumb things and part of it talks about a Sears repairman telling the woman that her appliance needs a bigger motor and the woman replies that she has the biggest motor and the Sear repairman says no maam, you have a 1/2 hp motor and you need a 1/4 hp motor. The woman says but 1/2 is larger than 1/4. And the repairman says, now maam, everyone knows 4 is bigger than 2. That’s supposed to be a true story. I just feel that when I buy the service plan that I’m betting their product will break down past the regular warranty that comes with it, so why am I buying this product. So I don’t buy them and my sister does. That worked for her because she has 6 children and her appliances are used to the max. I have no children and take very good care of my stuff and not buying works for me. So, as Clint would say, are you feelin’ lucky?
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