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Remodeling Return on Investment
If you are looking at a lengthy “to do” list this summer and are wondering which improvements to your property will have the most impact on value, you are in luck! Remodeling Magazine’s 2017 Cost vs. Value report is out, measuring 29 of the most popular remodeling projects and how the costs of those projects are recouped when it is time to sell.
The average return for the 29 common projects analyzed resulted in a 64.3% return on investment if the home was sold within one year of project completion. The trends for this year? Smaller incremental improvements provided the highest return. However, upgrades that affect curb appeal such as improvements to doors, windows and the siding also generated high marks, in fact, higher than a whole home remodel.
Which improvements scored the highest?
- Attic insulation – Adding attic insulation was the only project whose return was higher than the cost outlay with 107.7% of costs recouped (and with a cost of about $1,343).
- Entry Door Replacement – Replacing an entry door with a steel door recouped 90.7% with an average cost of $1,413.
- Manufactured stone veneer – With a cost of $7,851, this job returned about 89.4%.
- Minor Kitchen Remodel (which includes updating the cabinet doors and hardware, replacing cooktop, range, and slide-in fridge as well as replacing laminate countertops, flooring, sink, and faucet and touching up drywall and repainting) – This cost an average of $20,830 and recouped 80.2%.
- Garage Door Replacement – This project cost an average of $1,749 and had a return on investment of about 76.9%.
Should I renovate before I sell?
This might have you wondering whether it makes sense to do upgrades before selling if you can’t truly recoup your costs. However, in my opinion, this is a case of the whole being greater than the sum of its parts. A home with upgrades that is for sale will show better in the market and in my experience, will receive more attention from potential buyers, resulting in an overall higher price. While I don’t recommend a big remodel before going on the market, some of the smaller projects listed above may indeed be worth the time and money.
Larger projects such as adding a two-story addition, basement remodel, or major kitchen remodels cost more and didn’t recoup as much of the initial costs within the first year.
Wondering what improvements are having an impact on home values in our area or would you like to know what type of return to expect on your next project? Give me a call or text: (360) 319-0072 or email: brenda@brendamills.com.
Sources:
http://www.remodeling.hw.net/cost-vs-value/2017/
http://www.remodeling.hw.net/cost-vs-value/2017/key-trends-in-the-2017-cost-vs-value-report
