Wednesday, March 14, 2018
Improvements that Increase Home Value
As posted at: https://www.angieslist.com/articles/improvements-increase-home-value.htm?m=angienewsletter&entry_point_id=33043492&cid=eml_E007_M001_green__20180309
Tom Moor wrote for Angie's List Magazine and the Solution Center. The Indiana University graduate also penned a weekly automotive column.
Is your house outdated? Are you looking for a good ROI?
It could be time for a home makeover. Renovating or upgrading your home is a great way to add value at selling time.
Here are just a few areas of the home where you can receive a great return on your investment.
Here are just a few areas of the home where you can receive a great return on your investment.
Remodeled kitchens sell
They
say the kitchen is the heart of a home. So it’s not surprising that
many highly rated Realtors and contractors say it’s one of the best
rooms — if not the best — to renovate.
“Bright, updated kitchens that are white, modern and are clean sell homes,” says Jeff Kropp of Jeff Kropp - The Home Buyer Agents in Chicago. “The most time spent during any showing is in the kitchen; either discussing how amazing the updated kitchen is or how much time and money it will take to do so. It’s the focal point of homes now.”
“Bright, updated kitchens that are white, modern and are clean sell homes,” says Jeff Kropp of Jeff Kropp - The Home Buyer Agents in Chicago. “The most time spent during any showing is in the kitchen; either discussing how amazing the updated kitchen is or how much time and money it will take to do so. It’s the focal point of homes now.”
Need professional help with your project?
The
average cost of a midrange kitchen remodel is about $20,000, with an
estimated return on investment at 83 percent, according to Remodeling Magazine’s 2016 Cost vs. Value Report. It’s likely money well spent, especially if it attracts a potential buyer.
“The biggest detractor [to selling a home] is a kitchen that is not appealing,” says Scott Walker, owner of Walker Real Estate in Madison, Wisconsin. “If a buyer concludes it needs major remodeling, they will more often than not be discouraged from buying. The likelihood that the price will tumble is much higher.”
“The biggest detractor [to selling a home] is a kitchen that is not appealing,” says Scott Walker, owner of Walker Real Estate in Madison, Wisconsin. “If a buyer concludes it needs major remodeling, they will more often than not be discouraged from buying. The likelihood that the price will tumble is much higher.”
Renovating other interior rooms
A
midrange bathroom remodel, which costs about $18,000 according to the
Cost vs. Value Report, should yield close to a 66 percent return.
An example of a midrange remodel for a 5-by-7-foot bathroom includes replacing fixtures, adding a new shower control, a new white toilet, vanity with sink, vinyl wallpaper, a recessed medicine cabinet and tile flooring.
Basement remodels can also add life to your home’s value. Even if you decide against a whole basement remodel, keep the basement in good shape by eliminating sources that contribute to water, mold and mildew.
Sherri St. John, owner of DFW Improved, a general contractor in Frisco, Texas, says one of the best ways to add value is to add square footage to a home, which could include an addition.
Adding an attic bedroom is one of the best ways to recoup money, as is investing in the master bedroom.
“Buyers want suites with upgraded bathrooms and huge closets,” Kropp says.
An example of a midrange remodel for a 5-by-7-foot bathroom includes replacing fixtures, adding a new shower control, a new white toilet, vanity with sink, vinyl wallpaper, a recessed medicine cabinet and tile flooring.
Basement remodels can also add life to your home’s value. Even if you decide against a whole basement remodel, keep the basement in good shape by eliminating sources that contribute to water, mold and mildew.
Sherri St. John, owner of DFW Improved, a general contractor in Frisco, Texas, says one of the best ways to add value is to add square footage to a home, which could include an addition.
Adding an attic bedroom is one of the best ways to recoup money, as is investing in the master bedroom.
“Buyers want suites with upgraded bathrooms and huge closets,” Kropp says.
Don’t forget exterior home improvements
Don't underestimate the value of curb appeal.
“Landscaping, especially in the front, often gets overlooked or is treated more as an afterthought when, in my view, it is the single biggest improvement you can make to draw people into the house,” Walker says. “I think it is hard to argue with the proposition that if you can’t get a buyer into the house in the first place, you aren’t very likely to sell to them.”
Another addition to consider is a wooden deck. A midrange wood deck averages about $10,400 with a 75 percent return. Vinyl siding averages $14,000 with a 77 percent ROI.
One exterior project that will yield you a 93 percent ROI is adding manufactured stone veneer to the facade of your house, at an average cost of $7,500.
“Landscaping, especially in the front, often gets overlooked or is treated more as an afterthought when, in my view, it is the single biggest improvement you can make to draw people into the house,” Walker says. “I think it is hard to argue with the proposition that if you can’t get a buyer into the house in the first place, you aren’t very likely to sell to them.”
Another addition to consider is a wooden deck. A midrange wood deck averages about $10,400 with a 75 percent return. Vinyl siding averages $14,000 with a 77 percent ROI.
One exterior project that will yield you a 93 percent ROI is adding manufactured stone veneer to the facade of your house, at an average cost of $7,500.
Sweat the small stuff
More minor upgrades, such as new interior doors or door hardware can add a lot, says Dave Beck, owner of Classy Craftsmen in Cincinnati. Kropp says if there’s money left over, he would make sure as many rooms as possible have hardwood floors.
“It’s important to remember that your house is your home before it is an investment,” Beck says. “Maintain it, obviously, but invest in the enhancements which make you and your family happy.”
Editor's note: This is an updated version of an article originally posted on June 5, 2014.
What updates have you made to your home? Tell us about it in the comments section below.
“It’s important to remember that your house is your home before it is an investment,” Beck says. “Maintain it, obviously, but invest in the enhancements which make you and your family happy.”
Editor's note: This is an updated version of an article originally posted on June 5, 2014.
What updates have you made to your home? Tell us about it in the comments section below.
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