TOW: 5 Home Improvements that Return Biggest Values

Either you’ve saved some money or are using the equity in your home to do those home improvements you’ve always wanted to do.  Well, some improvements have better resale value than others. According to Remodeling Magazine (http://www.remodeling.hw.net/) basic home maintenance such as a new garage door or roof (80% return) will give you the biggest return whereas you’re less likely to recoup your investment in a major kitchen or bathroom remodel. New siding replacement recouped 92.8 percent of its cost. Minor kitchen remodels, in the low range of $15,000 was the only remodel that returned high at 92.9%.

Buyers assume the roof isn’t going to leak and the air conditioning and plumbing work. Upgrades like granite counters and steam showers can pay off as well, or at least help get your home sold quicker. Kitchen and bathroom remodels continue to be two of the best investments, as buyers are usually leery of taking on those challenges before moving in.

If you’re thinking about putting money or your home’s equity into home improvement project, be sure to keep resale and your return on investment in mind.  If you plan on staying in your home a long time, then do the things that will make living in your home increase the livability for years to come. One other consideration is over improving your home for the neighborhood.  No matter what improvements you put cash into, over improving can hurt your ability to sale in the future.

So here’s a list of the 5 home improvements with big returns:

  1. Kitchen. People spend a lot of time in the kitchen, so upgrades in that area are both visible and valuable. New appliances by themselves add both utility and sparkle to your kitchen. Rule of thumb: Expect to recoup about 75% of the cost of a kitchen remodel.
  2. Bathrooms. People like big, expansive bathrooms, so any fix-up that adds space like a vaulted ceiling, skylight adding space, is likely to pay off. But don’t get carried away on plumbing fixtures and expensive tile, that money will go right down the drain. Done right, you can expect a 75% return.
  3. Outside the house. New siding can give you a 75% return. New windows a 90% return on your money and better yet, a new roof is about a 95% return on the investment.
  4. Backyard living. Adding a patio or deck can be a huge expense, but it also increases your livable square footage. Plus in our area, it’s usable almost year round! So a deck can give you a big return of 98%!
  5. Front Door. The biggest return a homeowner will see is replacing an old front door with a steel front door, bringing a return of 138%. Plus it is the entry of the home, so it should be eye catching too.

For more information on whether you should improve your home or considering moving up for more space, check out my blog on “Move or Improve.” Thanks for joining the conversation.  Give us a call if you want to discuss your options for refinancing to use the equity in your home.