Home prices are stable if not rising and that means it’s a good time for remodeling or updating its times like this that your ROI or Return On Investment is high. Many people think that if you put $20,000 into your home in improvements then you get $20,000 out if you sell. That’s not true. It does increase the value of your home and will make your home more saleable if your looking to sell but it isn’t dollar to dollar. So if you’re thinking about tackling one of these improvements here are some examples to consider.
Probably the biggest and best remodel you can do is the kitchen, but experts say that the less you do the bigger your ROI.
By simply painting, adding a backsplash, changing up the hardware, new counters and new appliances you can expect an approx. 83% ROI.
Or in comparison a whole new kitchen including new cabinets and floors and all of the above as well you can expect an approx 74% ROI. Keeping in mind too if your adding a new gorgeous kitchen good appliances are important but unless we are talking about a high end luxury home then don’t go crazy with a sub zero walk in fridge and things that suit your personality, buyers wont care.
Remodeling your bathroom would include, floors, tub tile, sink, shower and so on and so on….. and if a whole new bathroom is what you want go for it. But if you are looking for ROI and to update and make it more saleable then concentrate on keeping the tub, toilet and sink if you can and focus on replacing the vanity surface with solid material (think: granite, quartz, marble), better faucets, shower head and updating tiles around the shower. These surface changes will stand out visually more to buyers and the ROI should be approx 73%.
People love to use their outdoor space and making that more appealing and functional is a huge bonus for buyers not just in sale price but in saleability. A wooden deck can have a ROI of 88% and a composite one would be approx 75%.. the difference is simply due to the greater cost of the composite.
Adding a 2nd story
People will rarely do a job this large and expensive (average national cost approx $155,000) to help sell their home its really about you needing the space now. However just so you are aware down the line the ROI on such a job would be approx 72% .
Finishing a basement
There is a reason that homes with a finished basement sell better, it more living space and it’s a big job that the new owners do not need to tackle. For a well finished basement space it should have a bathroom with a shower stall, a large entertaining area and well insulated walls. The ROI on this improvement is approx 78%.
Converting your attic
While not possible in all homes without a lot of remodeling work it does have a large ROI. Adding another bedroom, teen getaway, office whatever is very appealing for some buyers and for people looking for more room in their home. The ROI for this type of work is approx 85%.
I have collected these numbers from numerous sources and have averaged them for the purpose of this blog, simply trying to make this a brief easy to follow guideline for sellers to consider when thinking about doing these sort of improvements around their home. I hope this helps!