Whatever remodeling dreams a homeowner might have, certain projects offer real-life payoffs when one decides to sell their home. Even if not selling any time soon, keeping the home’s resale value in mind for the future could pay off. Here are a few things to consider when planning home improvements.
According to latest report from Remodeling magazine, all remodeling projects except a garage door replacement offer less than a 100 percent return. In the Pacific region as a whole, manufactured stone veneer added slightly to the resale value as well.
Don’t go for flashy
The value of home improvements can vary from city to city and even neighborhood to neighborhood. One constant, however, is that odd or unusual projects may not increase your home’s appeal to the average prospective buyer. If you plan to stay in the same house for years to come, go ahead and turn your living room into a replica of NRG Stadium. Be aware, however, that if you do choose to sell, it may stand out to potential buyers for the wrong reasons.
Generally, low- and mid-range projects hold their value better than upscale remodels. For example, an upscale, major kitchen remodel with an estimated cost of more than $100,000 returned just over 60 percent according to the Cost vs. Value Report, while an $24,000 minor kitchen remodel returned 87 percent (77 percent in Riverside).
There is no single right answer
It’s important to remember that every home in every market is different. It’s true that the data says you won’t get much return on your investment from adding a master suite addition (56 percent), but what if you really want a master suite? Or what if most homes in your subdivision have master suites, and you think you’ll be at a disadvantage competing against them when you sell?
The report from Remodeling magazine is a good place to start, but for specific advice about how a room addition or other improvement may affect the resale value of a home in a particular area, clients should ask their REALTOR®. And if a seller is already planning a move, a REALTOR® can help choose projects that might help a home sell faster.