5 Home Improvement Projects that Deliver Value
Whether you just bought a home, or you are thinking about sprucing up your house to increase its value, it’s wise to pick projects that deliver the most bang for your buck. Typically, the residual value after a home improvement project is completed is only about 64.3% of the overall project's cost. So, how much you increase your home’s value depends on what improvements you choose.
Not all projects deliver results
According to the Remodeling 2017 Cost vs. Value Report, which looked at 29 home improvement projects, only one delivered an increase in value that is greater than the cost of the project. Surprisingly, insulating your attic delivers the greatest bang for your buck, though it may not be a project that comes to mind when you think of renovating.
The remaining 28 projects the study looked at brought returns ranging from 91% of the cost to around 54% of costs. It pays to know which ones will deliver the greatest return on investment and determine if this plays a role in which improvement you want to make.
So, what are the projects that add the most value to a home and will allow a homeowner to recoup the most money when it’s time to sell?
Here is the rundown:
When choosing a project, you should consider how much enjoyment and happiness it will bring you while you live in the home. After all, there is more to doing a home improvement project than just its dollar value.
For example, installing a backup generator will cost about $12,800 to install and delivers a resale value of only $6,900, but it will be worth a lot to you (and your comfort) when a storm hits and your home loses power and heat for extended periods of time.
Another example is adding a family room, which can deliver hours of enjoyment for your entire family, but the return on investment is only about 69% of the costs. So even though the average price tag is about $89,500 – and you may only get back $62,000 in the sales price when you sell – it may still be well worth it to you as a homeowner because of the happiness and enjoyment that it brings.
Choosing the best project for you and your home can be a tough decision. If you want to know more before you decide, speak to your Realtor about what home features tend to be the most popular with buyers in your area. They can provide a professional opinion of what might help you sell your home when the time comes, and what will have little influence over today’s buyers.
Share This Post