When it comes to home remodeling, homeowners aim for two main goals:
- How to beautify the place they live in, and
- How to increase the value of their property
Ideally, the money that they put in can be recouped at the time of selling, or maybe not.
If you want to get the best value when doing home renovations, there are some important things to keep in mind.
Proper planning and careful research can contribute a great deal in recouping those renovating dollars and possibly even more than what you initially put in.
And like any other investment there’s a little P&L sheet that homeowners can put together when making a home renovation and construction decision.
Regardless if the new construction is a must have or an upgrade at least basic math will help make some sometimes minor decisions.
Is it worth the extra price per sq. ft. of the backsplash for your kitchen? There’s a big difference in the appreciated visual value of a sparkling, eye-catching kitchen area compared to a duller and more subdued look.
Sometimes an extra 1.5% in the overall cost of your total project could mean 5 to 7% more in increased perceived value. Just remember this works both ways, you may be overspending too, there’s where good research plays a big role.
No matter if you are thinking about tearing down interior walls, redoing interiors, replacing a kitchen or bathroom, changing the exterior of your home/property, or redoing landscaping.
Before you decide on a home remodel, consider the cost versus the value, and decide if the remodel you want to do is a worthy investment.
You should also have clear:
- Why you think you should renovate.
- What you need to know before you renovate.
- Whether the type of property (a single-family dwelling or multifamily unit) will affect your decisions regarding renovations.
When considering remodeling this is an inevitable question:
How much will this improvement add to the value of my home?
Not all renovations have the same return on investment.
Here are some remodeling projects that deliver the highest return; according to 2018 Cost Vs. Value Report published Remodeling Magazine.
- Entry door replacement (steel)
If you replace your 36-by-80-inch entry door with a 20-gauge steel door, you will recoup over 91 percent of your cost.
Completing that work with clear dual-pane half-glass panel, jambs and an aluminum threshold with composite stop it will be the best.
- Average cost: $1,471
- Average resale value: $1,344
- Cost recouped: 91.3%
- Deck addition (wood)
One advantage of owning a house is having yard space.
Nothing enhances a yard like a wood deck.
If you choose to install a deck take some time to plan it out and come up with unique features such as built in benches.
It has been determined that when you spend the money to add a deck onto your home, you will likely be able to recoup more than 82% of its cost at sale time.
This project involves adding a 16-by-20-foot deck, including a railing system with pressure-treated wood posts, railings and balusters.
Use higher-grade materials to increase the life of the deck.
- Average cost:$10,950
- Average resale value:$9,065
- Cost recouped:8%
- Minor kitchen remodel
It pays an 81 percent return, while major midrange kitchen remodel has a 65 percent return on investment, which is still an important figure.
This upgrade is based on a 200-square-foot kitchen with 30 linear feet of cabinetry.
- Average cost:$21,198
- Average resale value:$17,193
- Cost recouped:1%
In a minor remodeling, cabinet boxes are left in place but updated with modernized Shaker-style wood panels and drawer fronts.
Replace laminate countertops with new laminate.
Next, swap out older appliances with energy-efficient models.
Said to be the heart of the home, the kitchen deserves some extra attention if you are hoping to sell.
According to the aforementioned report, the other two renovations that bring the greatest percentage return on investment are:
- Attic renovation with 84%.
- Garage door replacement (83%).
Contrary to what you may think, adding a bathroom, which is a major investment, does not have the best return.
Reports from both the National Association of Realtors and Remodeling Magazine say homeowners will recoup slightly more than half their investment, 59.9% to be more precise.
However, it may be essential to making a sale, especially if there is only one bathroom in the house.
When planning reconstruction or remodeling, keep these things in mind and enjoy:
- Don’t make things too personal in your renovation.
- Don’t over-renovate for desired outcome.
Courtesy of Build and Rehab,https://buildandrehab.com/
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