Remodeling Your Home & Cost Recovery
Updating your home can be both exciting and overwhelming. Depending on your reason for remodel, you may be concerned about what items should give you a higher return on your investment.
We took a look at the National Association of Realtors Remodeling Impact Report and found some interesting information on how much some updating will impact your pocketbook. Here are some of the top producers in helping you recover your cost according to their research.
Interior Work
While the report indicates that some of the most desired updates to a home by a buyer are kitchens and bathrooms, the highest return on initial investment come from the items listed below. However, it is certainly not to say that items like the kitchen and bathroom should be neglected. These updates generally create a higher initial excitement around a listing and are aesthetic concerns for a buyer.
Hardwood Flooring Refinish vs. New Wood Flooring - Hardwood floors are beautiful and desired by many home owners! They do require some maintenance as the wood will show wear and tear throughout the years. The study found that if you refinish your hardwood floors there was a 100% cost recovery. They estimated cost of this around $3,000 with a full return. On the other hand, New Wood Flooring had a 91% Cost Recovery with an estimated completion cost of $5,500, with estimated $5,000 return. It is important to keep in mind, however, that sometimes wood floors with severe defects or damage may need to be replaced.
Insulation Upgrade - Feel like your heating bill or A/C expenses are through the roof? Upgrading your insulation can make a big difference on how well your home holds in the air that you pay for. The report found that upgrading your insulation had a 76% cost recovery. The number one reason for it? Improving Energy efficiency. Estimated install of an upgrade came in at about $2,100. Estimated cost of recovery is $1,600 according to the report.
HVAC Replacement - From our experience, old mechanicals in a home is generally something that a buyer is concerned about. If a furnace or A/C unit is towards the end of it's lifetime, they may ask for a home warranty or replacement to avoid future costs. Depending on the replacement, the NAR report showed a 67% recovery cost. Estimated cost of just over $7,400 and an estimated ROI of $5,000. The number one reach that people would replace the units would be to help to improve energy efficiency and better functionality.
Exterior Work
New Roof - According to the research, this is the only item that can give you a higher return! The estimated cost of recovery is 109%. A roof that needs repair or complete updating is something that will eventually need to be done on any home, if you notice it's towards the end of its life, it may just pay to have it redone with this research. The estimated cost of a new roof is $7,500 with a cost of recovery of $8,150. It's no surprise that the top reason for replacement was that it was worn down.
New Garage Door - This is another great one to consider when doing some exterior work. Think curb appeal with all of these... The estimated cost of recovery for a new garage door is 87%. The NAR estimated a cost of $2,300 with an estimated return $2,000. Once again, one of the biggest reasons why owners replaced or were recommended it should be replaced was that it was worn or needed updating.
New Vinyl Siding - Siding can be extremely important to potential buyers. If the siding on your home is in serious distress and a fresh coat of paint won't do it, it may be worth replacing. There is an estimated 75% cost recovery, with an estimated cost of $13,350 and an estimated return of $10,000.
New Steel Front Door - The front door is such an important part of a home! It's where you greet guests and can add a bit of flair with a color pop or design. It also can be a source of helping to maintain energy efficiency in your home. This is the main reason why owners replaced, and buyers desired a new steel front door. There is an estimated 75% cost recovery. Estimated cost of a new steel door is $2,000, with an estimated return of $1,500.
You can find the full report with the information above, including other projects that don't have as high of a return, here.
What is important to remember with some of these items is that other items, like the kitchen, finishes throughout the home, and paint colors, still matter to a buyer. There are other items that you can do throughout your home to help keep these updated, without necessarily spending as much as the items listed above.
If you are thinking of selling or just want to know other items that will help you in the future for resale, you can always reach out to us for guidance! We would be happy to help you decide other items that may help you or have our interior designer come out to guide you in the right direction when picking out styles or coloring.