Whether you’re planning to sell your home soon or just want to improve your home’s livability and efficiency, not all remodeling projects are created equal. According to Forbes, Americans spent over $340 billion on remodeling projects in 2018, but which ones are the best investments?
Here are some of the most popular remodeling projects and estimates of how they stack up in terms of recoup and sale appeal.
Kitchen Upgrade:
- Major Remodel:
- Cost Estimate: $55,000
- Resale Value: $45,650
- Rate of Return: 83%
- Minor Remodel:
- Cost Estimate: $18,000
- Resale Value: $15,480
- Rate of Return: 86%
Kitchens renovations are among the most popular renovations for homeowners, and for good reason! Not only are kitchen updates aesthetically pleasing and functional, but they offer a good return on investment for resale. Best news of all–you don’t need to do a complete overhaul to have it benefit you! Subway tile, two-toned cabinetry, and stainless steel are all trendy right now!
Bathroom Renovation:
- Cost Estimate: $30,000
- Resale Value: $22,500
- Return on Investment: 75%
Bathrooms are the second-best place to update if you plan on selling your home. Forty-five percent of realtors have suggested sellers complete this project prior to selling. It will look clean and fresh—the perfect project for welcoming a new family into the space!
Hardwood Flooring:
- Cost Estimate: $5,500
- Resale Value: $5,000
- Return on Investment: 91%
This is a tough one to estimate because it all depends on the size of your living space. That said, hardwood flooring remains desirable, and is among the most affordable upgrades homeowners can make both for their personal enjoyment or resale. It’s hypoallergenic, durable, and the National Wood Flooring Association (NWFA) indicates that the vast majority of U.S. real estate agents say that they believe houses with hardwood flooring are easier to sell, sell for more money, and sell faster.
- Cost Estimate: $55,000
- Resale Value: $43,450
- Rate of Return: 79%
Finishing your basement is one of the most economical ways to add livable square footage to your home. While it still comes with a hefty price tag, the percent of value recovered from the project is high!
Curb Appeal:
- Siding:
- Cost Estimate: $9,500
- Resale Value: $8,265
- Rate of Return: 87%
- Roof:
- Cost Estimate: $14,000
- Resale Value: $10,360
- Rate of Return: 74%
Adding a new roof and/or siding is no small undertaking, but it not only looks nice, but lasts for 20+ years and improves the structure of your home. This is a highly appreciated update for potential homebuyers!
All of these upgrades are not only smart financial decisions but can be enjoyed by you while you live in your home. What will be your next home improvement project? Check out our Rehab and Construction Handbook to see how we can help make your dream home a reality!
(Source: BusinessInsider.com)