Maybe you don’t plan on selling your home, but you should be aware of the return you can expect on the investments you make in your home renovations. Prepare to be surprised at the cost versus value ratio for these common home remodeling projects.
These are the renovations that bring the greatest percentage return on investment, according to Remodeling magazine’s annual Cost vs. Value Report for 2014.
- Entry door replacement: 96.6 percent
- Deck addition (wood): 87.4 percent
- Attic bedroom: 84.3 percent
- Garage door replacement: 83.7 percent
- Minor kitchen remodel: 82.7 percent
- Renovations that yield the smallest return:
- Home office remodel: 48.9 percent
- Sunroom addition: 51.7 percent
- Bathroom addition: 60.1 percent
- Master suite addition: 67.5 percent
All 35 projects included in the Cost vs. Value report added more value this year than last year, and this is the second consecutive year of increases after several years of decline.
Replacing old elements, such as doors, windows and siding, in general yielded a better financial return than bigger remodeling projects, such as additions. But real estate agents and remodelers say updated kitchens and baths still bring a significant payoff, especially at resale time. The report found that kitchen projects yielded a higher return than bath projects, with a minor kitchen remodel adding 82.7 percent of the project’s cost back to the home’s value. Kitchens are important because would-be buyers often overestimate how much they would cost to update and that may make them shy away from the sale.
Renovations within the existing envelope of your home – those that don’t require you to build an addition or expand the roof and foundation – often return more value than building extra rooms onto your home.
Adding a powder room and then closing off a hall bathroom to make a bedroom suite is popular and it doesn’t require adding to the home.
Replacing windows with French doors that open to views of the water or landscaped yard is another popular, and cost effective, renovation project that immediately gives your home the feeling of more space and light.
Always remember that while resale value is one factor to consider in a remodeling project, the value to you as an occupant should also be a high priority, especially if you have no immediate plans to sell your home within the next year.
Would you like to know what renovations you can do to sell your home quickly? Contact us today for a free consultation.