Planning to sink some money into home improvement projects any time soon? There are a few things to keep in mind. Whether you’re planning to enjoy your home for a few more years or hoping to increase the value before you sell, home updates are typically a guaranteed aspect of home ownership. When determining which home improvements to make, keep in mind that buyers take the basics for granted–they are going to assume your roof doesn’t leak, your air-conditioning works and your plumbing doesn’t have any issues.
Ultimately, what you will get back for your investment depends on the value of your home and homes in your neighborhood, the housing market where you live, how soon you sell after making the improvements, and the quality of the project itself. Below are 3 of the top home improvements and how much bang-for-your-buck you might receive upon completion.
Kitchen & baths
Kitchen and bath remodels are usually a solid investment, often returning more than 100% of the cost. In Baltimore, for instance, a $9,400 bathroom remodel earns back 182 percent of its cost at resale, and in the Washington, D.C., Minneapolis (that’s us!), Chicago, Atlanta, San Francisco and San Diego markets triple-digit returns are also seen on bathroom remodels. Kitchen and baths are the most expensive areas of the home in terms of construction and are considered to be the most important areas; they’re where most of the homeowner’s time is spent.
Project to consider: Minor bathroom remodel
Average return at resale: 102 percent
It costs approximately $10,500 to replace the tub, tile, floor, toilet, sink, vanity and fixtures. You’ll get back an average of $10,700 at resale, a recoup rate of 102 percent. Replace caulk, remove dated wall coverings, apply fresh paint and replace old shower doors and fixtures.
If people drive by your home and are not impressed with what they see, they’re not going to go inside. We’ve talked to you before about the importance of curb appeal. You want to convey a sense of welcome with the exterior and yard of your home. Updating your curb appeal can include everything from landscape to your front porch or replacement siding.
Project to consider: Updating your landscaping
Average return at resale: 100 percent
According to the American Nursery Landscape Association, the average homeowner spends about $3,502 for landscaping and $1,465 on a designer. Add trees to your yard, tidy up your flowerbeds, add outdoor lighting and define your lawn and flowerbed borders with fresh mulch to spruce up your landscape.
Adding a room or two is always a good investment – who doesn’t like more space? The request for home additions has risen over the years, with homeowners requesting sun rooms, adding bathrooms or entirely doubling the size of the home. The demand for added space is driven by homeowners who want more space but realize they may not be able to afford larger homes in their neighborhood. According to the National Association of Realtors, every 1,000 square feet added to a home boosts the sale price by more than 30 percent. Bathroom additions currently return the most at an average of 86.4 percent.
Project to consider: Attic bedroom conversion
Average return at resale: 93.5 percent
The average attic bedroom in a two- or three-bedroom home costs $39,188 and returns $36,649 at resale. This price includes a 15 x 15 ft. bedroom, a 5 x 7 ft. bath with shower, four windows and a closet.
Home improvements can be a big process, but they pay off in the long run, not only for your own home enjoyment, but also if you are looking to sell your home down the road. If you are looking to sell your home, we have the resources and tools to help – give us a call today!