Whether or not you are planning to sell your property in the near future, or you just want to enjoy a few simple upgrades, you’ll likely want to invest in projects that have a high return on investment. It is important to note that not all home improvement projects are created equal. We are here to help guide you through the home improvement process and recommend the projects that have the best return rates.
Before we get into specific home projects, let’s review some valuable resources for homeowners to reference when researching cost versus value. The Remodeling 2020 Cost vs. Value Report compares average costs for 22 remodeling projects with the value that those projects saw at resale in over 100 major U.S. markets. The report allows you to drill into data for your specific area to understand your city’s job costs, resale value, and cost recouped for popular projects and compare those numbers to national and regional data.
Another helpful resource is SoFi’s home improvement ROI estimator. This calculator compares your project type to regional resale data so you can estimate a likely project return. Simply select your project, enter in some specifics, and see what type of value you could get in return. While these online resources might not be 100 percent accurate for your home and your neighborhood, they provide a good idea of what homeowners can expect for specific projects.
The most sure way to know what a project’s ROI could be is to consult your trusted real estate agent. Our agents at Helen Adams Realty know the local market conditions and buyer expectations and have relationships with vendors around town for every job. They can provide helpful advice on what to tackle first, what will pay off at the closing table, and what to focus on for return.
Bathroom Updates
On average, it costs about $10,500 to replace the tub, tile surround, floor, toilet, sink, vanity and fixtures. You’ll get back an estimated $10,700 at resale, a recoup rate of 102 percent, according to a national report by HGTV.
Easy bathroom fixes like caulking a tub, painting baseboards, or changing out faucets and hardware can be done on a smaller budget with a quick trip to your local home improvement store. Remove dated wall coverings and apply a fresh coat of paint for another quick bathroom facelift. Kitchens and bathrooms are especially prone to looking dated, so consider those rooms first on your to-do list.
Kitchen Remodel
Commonly called the heart of the home, the kitchen is often your home’s focal point. According to BankRate, the average cost of a minor kitchen remodel is $23,452 with an average resale value of $18,206, resulting in 77.6 percent of your cost recouped. There’s no doubt that buyers see the value in a kitchen upgrade. The room can easily boost your enjoyment of simple everyday activities like cooking, entertaining friends and sharing meals with family.
With an average recoup of a little more than 77 percent of the cost of a minor kitchen remodel, it’s a solid investment in your home’s future value. For more minor kitchen adjustments, consider replacing appliances with new, more energy-efficient models; refacing cabinets with new shaker-style wood panels; installing new countertops and a new sink and faucet; replacing hardware; adding new flooring and repainting the walls.
Garage Door Replacement
A full, and sometimes overlooked, replacement is your garage door. A good-looking garage door is high on the list when it comes to getting cash back on your investment. BankRate’s average cost for a garage door is $3,695, with an average resale value of $3,491, resulting in 94.5 percent of your cost recouped. This estimate is based on the cost of removing and disposing of an existing 16-by-seven-foot garage door(s) and replacing it with a new four-section garage door with heavy-duty galvanized steel tracks, and assumes you’re reusing the motorized garage door opener.
Not only is a well-working garage door extremely functional for your home, but this curb-appeal enhancer will get you back close to all of what you spent on it when you sell your home. A new garage door is one of the best ways to make the exterior of a home look better than before.
For more insight on the value of home improvement projects, call your preferred Helen Adams Realty agent. If you’re thinking about selling your home, reference our recent blog and tips for how sellers can best prepare for the spring market.
Looking for a real estate agent that will fit your needs? Give us a call. Our Referral Services Manager, Jordan Bass, will find the right Helen Adams Realty agent that can best help you and your family. While considering your preferred area of town and your current wants or needs, Jordan can help match you with the perfect agent for the job.