06/24/2016
Looking to sell your home and wonder which improvement projects get the most return on your investment? It's a great question. It used to be that kitchen and bathroom remodels were a couple of areas that you would generally get close to, if not over, a 100% return. Those days, at least for now, are gone. Oddly enough, kitchen and bathroom remodels are the hot improvement trends right now. It makes sense. Dozens of cooking shows on the cable networks, organic foods and healthy eating are gaining steam, and gourmet cooking is taking place in more homes now than ever before. Home improvement shows feature large walk in showers with shower fixtures that are loaded with features. Homeowners updating these areas are ( hopefully) doing it because they intend to stay in their homes. If you look at different websites, there are varying opinions as to what the best ROI's are. There is some common ground however. Most every site states that new paint, a good deep clean up of the exterior AND interior of your property, and getting rid of clutter to make your home seem larger are areas that cost very little, if anything. Just some elbow grease. New cabinet and door hardware and new electrical switches and outlets can brighten up the place at a minimal cost. For the projects that do cost more than a few bucks, new attic insulation, a new front entry door (steel), and new roofing are at the top of the lists enabling anywhere form a 90%-110% return. Good and/or newer air conditioning, plumbing, and electric panels and systems that are up to date do a lot to ease the minds of potential buyers. Costly maintenance concerns down the road are a huge concern for home buyers and are consistent deal breakers. Vinyl, or better yet, fiber cement siding (James Hardie), and finishing an un-finished basement are decent investments as well
So what are some of the worst improvements as far as your return? Adding a sun room was high on everyone's list with not even a 50% return. So spending $50K on a sun room addition won't even get $25K of your money back. Garage additions, home office remodels, bathroom remodels, and composite decks were also high on the "worst" list.
The bottom line is this: Educate yourself and consider your particular market and region when doing so and hire a knowledgeable Realtor. And if you do want an upgrade to one of those areas that provide very little RIO, that's ok. Do it if you want. But do it because you want it and you plan on staying in your home to enjoy it.
