Are you considering making some improvements to your home before listing it for sale? Here is what you need to know before you begin any costly project. The reality is just because you spend $25,000 remodeling your home, does not mean your home is worth $25,000 more. The return on investment (ROI) when remodeling a home will depend on the following factors:
- The current housing market trends.
- Value of the other homes in your neighborhood.
- When you plan to sell.
- Exact nature of the improvement.
Also, it is important to understand that the longer you live in your home after a remodel, the less ROI you will realize. The following is a list of improvements that pay off, as well as those that don’t.
Painting: If you plan to sell within the next year or two, a fresh coat of neutral toned paint could facilitate the transaction. A professional exterior paint job may also recoup up to 75% of its cost.
Kitchen Remodels: A few basic kitchen improvements can be one of the best ways to go. New paint and flooring are always a plus as well as sanding, staining or painting worn looking cabinets. Replacing old cabinet hardware is also a very low cost improvement that makes a big difference in appearance. According to Remodeling Magazine, a full kitchen remodel recouped 80% of its cost and a more moderate remodel was valued at 87%.
Area Conversions: Generally speaking, increasing the functional space of your home holds its value longer than simply remodeling to make a house look better. Furthermore, area conversions are typically far less expensive than adding an addition. According to Remodeling Magazine, turning your basement into an extra living space costs (on average) about $40,000 with an average ROI of about 69%.
Adding a Bathroom: The addition of an extra bathroom is definitely one of the better improvements you can make to your home. At an average cost of $14,200, a new full bathroom can recoup 81% of its total cost.
Adding a Deck: The addition of a deck is one of the most cost effective ways to add square footage to your home and will generally recoup 75% of their costs. Compared to other outdoor improvements (except painting) this is one of the best.
New Windows: Often times the utility bill savings will compensate for the iffy resale value. Assuming you have standard windows (not custom shapes and sizes) a good quality replacement should realize about 68% ROI.
Gardens and Fences: Typically they look nice but, buyers don’t pay for them. Unless a buyer is an avid gardener or landscaper, they will not want to have to maintain gardens and fences.
Swimming Pools: Just don’t do it! Swimming pools are expensive to maintain and create fear of accidents and liability. Furthermore, a swimming pool will have little to no resale value.
It is important to remember to make sure your home is in good condition before diving into any remodel. A buyer will not be impressed by your new bathroom if you have a leaky roof. Also, keep your remodels basic so you appeal to a wide array of buyers. Lastly, if you want to know how to get the ROI over 100% on you next remodel, please contact me at the information below.
All the best,
Tyler MacGuire e-PRO®, SFR
Broker Associate
Omni Real Estate Company
Office: 970-468-2740 begin_of_the_skype_highlighting 970-468-2740 end_of_the_skype_highlighting begin_of_the_skype_highlighting 970-468-2740 begin_of_the_skype_highlighting 970-468-2740 end_of_the_skype_highlighting end_of_the_skype_highlighting
Your Guide to Summit County Real Estate
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