You’ve dreamed about making some improvements to your home, and now seems like the right time to move forward with a project or two. But before you begin, there are several things you should consider: What return can I expect on my investment, and how will this improvement affect my resale value?
While you may say that resale doesn’t matter since you don’t intend move anytime soon, life may have other plans. Just as it is short-sighted to buy a home without considering its value to future buyers, it’s equally unthinking to make improvements without seeking out advice from your Realtor.
Improvements that add value can vary by region, city and even neighborhood. A Realtor can help make sure you have selected the right level of improvement to add resale value and not be a detriment. When it comes to remodeling, you really do want to keep up with the Joneses who live down the street, but not try to top them, if you want to make a smart investment.
According to Remodeling magazine’s Remodeling Cost vs. Value Report 2010-2011, the top remodeling projects, ranked by recouped amount of cost, are as follows:
|Project||Job Cost||Resale Value||Percent Recouped|
|Entry Door Replacement (Steel)||$1,218||$1,243||102.1%|
|Garage Door Replacement||$1,291||$1,083||83.9%|
|Siding Replacement (Fiber-Cement)||$13,382||$10,707||80.0%|
|Wood Deck Addition||$10,973||$7,986||72.8%|
|Minor Kitchen Remodel||$21,695||$15,790||72.8%|
|Wood Window Replacement (Mid-range home)||$12,027||$8,707||72.4%|
Keep in mind that all home improvements don’t need to be major in scope or expensive to net some big returns at resale. Cleaning and de-cluttering, lightening and brightening, yard improvements and improving room layout or organization all require a very small financial investment that is generally recouped many times over.