Want to know what you’re likely to recoup on your remodeling or renovations? Here’s the info for 2017 from RISmedia’s Housecall Cost vs Value Report
Here are some important notes …
Cost vs Resale Value
In reviewing the numbers on these charts, you’ll notice that some less expensive projects have a greater “payback” (ROI). This is because their cost is lower. But as the prices rise, especially for materials, the ROI may be less.
Timing May Matter
For instance, in 2014, the year after Superstorm Sandy, the backup power generator ROI rose to 67.5%. This year, the ROI dropped to 54% because we are now 4 years from the event.
Where Should You Start?
There are essentially 3 reasons homeowners renovate or remodel:
- Staying in their home. They are planning to stay in their home for awhile and want it to be more to their liking — a larger, more spacious bath, an upgraded kitchen, better insulation, a larger Family Room, etc.
- Comfort & efficiency. They need to make some repairs or do some replacements to make their home more comfortable and/or efficient — think new furnace, central air, plumbing repairs, electrical upgrades, etc.
- Preparing to sell. This may involve repairs like fixing the stain on the kitchen ceiling from last year’s leak in the upstairs bath, to painting the interior in neutral colors, new windows, new appliances, etc.
For #1 and #2, you probably already know what you like or need, and have been thinking or dreaming about the changes for awhile.
For #3, however, it’s vital that you consult with your experienced Real Estate professional before you begin. She/he works with lots of buyers and will be able to offer you some keen insight about what CURRENT buyers are looking for and commenting about.
For instance, several of my clients felt their kitchens were “tired” and needed granite counters and new cabinets in order to sell their home. Such renovations can be very costly and may not pay off. This is because kitchens and baths are very personal spaces. Your idea of a dream kitchen might not be the same as that of potential buyers’. Likewise for bathrooms.
BUT—there are ways to “upgrade the look” of both without the high $$ expense. The idea is to make buyers feel sufficiently comfortable in your kitchen/bath so they think to themselves “I can live with this for awhile and then put in the kitchen/bath I want next year.“ So, “neutral” with an “updated look” is the key. For example, instead of granite counters, swap your older “formica” counters with ready-made “granite look-alike” laminate counters — a few hundred dollars instead of a few thousand! And you can replace your cabinet doors and hardware — again, spending a few hundred dollars and saving thousands! And I know exactly where you can get these less-expensive renovation items! When my clients follow this advice, they always get an appropriate ROI.
In fact, NOT consulting with your Real Estate Pro before you begin, can be a very costly mistake, causing you to make assumptions about what’s important to potential buyers. Her/his advice can save you lots of money and disappointment.
Please call me if you want some help …