Remodeling Project's Return on Investment
The 2015 Realtor Magazine and Remodeling Magazine Cost vs. Value report has hit the newsstands. I have been sharing this with my readers for over 10 years and it is always a worthwhile topic that I discuss with sellers who are getting their homes ready to sell. “Less is More” is the title of this year’s study. 36 DIY projects were rated for the best return on money spent. The 2015 report showed that simpler, lower-cost jobs returned a greater value. Projects such as a front door replacement (at 86% return on investment, best job to do as it creates a favorable first impression), garage door replacement at 68%, mid-range window replacement at 64% and minor kitchen remodels at 64% cost less than larger jobs and provide a bigger payback.
Some projects are worthwhile to do to remove objections that a buyer may have and so are a high priority item for prospective sellers. Besides those listed as the top projects to do, the following are very worthwhile: deck additions (73%), vinyl siding (72%) and basement remodel (61%). Basement remodels are becoming more popular because new appraisal guidelines allow for the computation of “additional living space” or ALS that factors into home values.
Projects that have less desirable returns on investment are big projects that feature digging up the dirt and laying footings. Projects like adding a home office (31%), adding a sunroom (39%), adding a family room (54%) adding a garage (51%), and adding a brand new bathroom (44%) usually cost a significant amount.
Lastly, some projects such as roof replacements should be done when needed as it is a maintenance item that should not be deferred. Putting off some repairs will likely cost more in the long run with not only increased costs, but also repairing damage from not taking care of roofs, old plumbing and electrical and adding gutters to keep foundations in good condition. If you have any questions, give Bill a call and he will assist you in prioritizing your list of projects and giving you some contacts of building professionals.
To check out the report click this link: 2015 Cost vs. Value Report.
To check out the trends click this link: 2015 Cost vs. Value Trends Report.