Many homeowners are confused about which projects will provide the most return on investment as they prepare their homes for the market.
The 2014 Remodeling Cost vs. Value Report, co-sponsored by the National Association of Realtors and Remodeling magazine, outlines the costs and resale returns on the most popular home improvement projects.
Realtors know which home features are important to buyers in their area. Projects such as a new entry door, siding and window replacements can recoup homeowners more than 78 percent of costs upon resale.
So why remodel anything if it’s not going to give you back 100%? It’s because the first impression a homebuyer gets is priceless. You want the buyer to choose your home, and quit looking for something better.
If the buyer doesn’t like what he sees, you won’t get another chance to make any kind of impression.
So which home improvement projects will net the most return?
Eight of the top 10 most cost-effective projects are exterior projects.
Replacing your front door with a steel entry will cost $1,100 on average, but you’ll get nearly 97% of what you spent back in your pocket.
The second most popular improvement is a wood deck addition, which will return over 87 percent of costs, similar to the return on fiber-cement siding. Vinyl siding returns a little over 78 percent of costs.
A midrange garage door replacement returns nearly 84 percent while an upscale garage door replacement offers 82.9 percent of costs recouped. Wood window replacements recoup over 79% of costs and vinyl windows return nearly as much.
Rounding the top 10 projects are an attic bedroom and minor kitchen remodel. These are important too, but you’ve got to pique buyers’ interest first.
The good news is that the return for all projects is higher in the last two years. To find out what the best return on home improvements is in your area, talk with your REALTOR.
Written by Blanche Evans