Here
are five great ways to add value to your home, and five more that generally
don’t pay off as well.
By: Matthew Frankel – The Motley Fool
Are you considering doing some home improvements this year? Doing a home
remodel has a double benefit -- you not only get to enjoy a new kitchen, patio,
or other improvement, but you can also add value to your home.
However, not all remodeling projects give you the same return on investment.
The average home remodeling project added just 56.8% of its cost to the value
of the home in 2017, according to
Remodeling's 2018 Cost vs.Value
report, which analyzed 20 common professional remodeling projects.
On the other hand, if you spend your home improvement dollars on one of
these high-return projects, you could greatly improve the quality of your home
while substantially increasing its value.
The top five cost-versus-value remodeling projects of 2018
Project
|
Cost
|
Resale Value Added
|
Cost Recouped
|
Garage
door replacement (upscale)
|
$3,470
|
$3,411
|
98.3%
|
Manufactured
stone veneer (midrange)
|
$8,221
|
$7,986
|
97.1%
|
Deck
addition -- wood (midrange)
|
$10,950
|
$9,065
|
82.8%
|
Minor
kitchen remodel (midrange)
|
$21,198
|
$17,193
|
81.1%
|
Siding
replacement (midrange)
|
$15,072
|
$11,554
|
76.7%
|
Don't expect a huge return from these five projects
On the other end of the spectrum, some projects generally don't add nearly
as much value to your home:
Project
|
Cost
|
Resale Value Added
|
Cost Recouped
|
Backyard
patio (midrange)
|
$54,130
|
$25,769
|
47.6%
|
Master
suite addition (upscale)
|
$256,229
|
$123,797
|
48.3%
|
Major
kitchen remodel (upscale)
|
$125,721
|
$67,212
|
53.5%
|
Bathroom
addition (upscale)
|
$83,869
|
$45,752
|
54.6%
|
Bathroom
remodel (upscale)
|
$61,662
|
$34,633
|
56.2%
|
General trends to notice
There are two general trends to notice in these charts.
First, exterior projects that create "curb appeal" generally
produce higher returns than interior projects. Of the highest-return projects,
four of the five are exterior modifications. And of the lowest-return projects,
all five are either interior projects, or projects hidden away from view, such
as the backyard patio. This certainly makes sense -- curb appeal doesn't just
add value to your home, but it can help it sell more quickly, too.
Second, if you want to add value, don't go too over the top. Midrange
projects tend to add more value, in percentage terms, than upscale ones. All
four interior projects on the low-return list are of the upscale variety, and
notice the huge gap in returns between a minor mid-range kitchen remodel and a
major upscale kitchen remodel.
Every project and location is different
As a final thought, keep in mind that these figures are just based on
national averages, and that your particular project could have significantly
different results. For example, a minor kitchen remodel is not likely to add
much value if the existing kitchen is just fine. On the other hand, if the
existing kitchen is falling apart, your return could be even more than the
76.7% indicated on the chart.
Geography can play a role as well. In warmer climates, outdoor spaces such
as backyard patios and even swimming pools can add far more value than they do
in markets where they're useful only a few months out of the year.
Also, in "hotter" real estate markets, remodeling projects tend to
deliver more value. For example, of the 149 U.S. markets the report tracked, an
upscale garage door replacement returned
more than 100% of its value
in 46 of them. In fact, of the 20 projects examined in the report, 18 of them
delivered more value than their cost in at least one U.S. market. (Note
that
Remodeling's report contains an infographic that breaks down
the data geographically.)
The bottom line is that while these trends can certainly be useful when
planning your next remodeling project, be sure to consider the specifics of
your own situation as well.
Give Jinks Realty a Call (956) 429-3232 or Visit our Website
www.JinksRealty.com for all Your Real
Estate Needs.
#HomeForSaleMcallen #JinksRealty #McallenHomes #RgvHomes #RealEstate #RioGrandeValley #Edinburg #JinksRealtyTeam #EdinburgRealEstate #Mcallen #Mission #home #RGV