Fortunately, there are a lot of home improvement projects that are worth your investment and will bring incredible returns, should you decide to sell your home in the future.
Whether you’re planning to put your home on the market a year or a decade from now, it makes sense to consider projects that will enhance its overall value. To determine which projects you should prioritize, you can consult expert contractors or review the latest Cost vs. Value Report by Remodeling Magazine.
Remodeling Magazine’s Cost vs. Value Report
For almost 20 years, Remodeling Magazine has been doing something that few other publications in the industry dared to do: provide estimates for home improvement projects. Every December, the company publishes their Cost vs. Value report for the preceding year, calculating the estimated average cost of remodeling projects across the United States. This report pulls in a huge amount of data—from 30 upgrade projects across 100 U.S. markets, to be exact.
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What makes this report so unique is the fact that it shows general estimated costs. Anyone in the remodeling industry understands how difficult it is to give a projection on upgrade costs in general because prices are specific to each project. The report also includes estimated resale values, which represent more than 3,000 data points. To come up with this, Remodeling Magazine uses figures from survey responses from 6,500 members of the National Association of Realtors. Thanks to these figures, homeowners can get an insight on how much they can recoup when they invest in a particular project.
Projects that Boost Home Value
Remodeling can make your home more enjoyable, and if done right, can increase its value along the way. Not all upgrade projects are created equal, however. While some projects can truly give your home’s value a boost, other can reduce its sale price. In other words, you need to be smart in choosing which upgrades you should prioritize. That’s where Remodeling Magazine’s 2017 Cost vs. Value report will come in handy.
Projects that help improve curb appeal and energy efficiency topped the list of this year’s report. For all the projects reviewed, the average resale value was 64.3 cents on the dollar—about three-quarters of a penny higher than in the 2016 report. If you’re thinking about making improvements to boost your home’s value, here are six projects found to be the greatest options for recouping costs:
Job Cost: $1,343
Resale Value: $1,446
Cost Recouped: 107.7%
When it comes to resale value, this home improvement project brought in the highest returns based on the 2017 Cost vs. Value report. Poor insulation in the attic accounts for nearly one-quarter of overall home heat loss. This is because cracks and gaps on attic walls, as well as on the roof, can serve as passageways for indoor heat to escape through. By choosing to reinforce your insulation, you can keep your living spaces comfortable and reduce your utility costs, resulting in as much as 107.7% cost recoupment over time.
Entry Door Replacement (Steel)
Job Cost: $1,413
Resale Value: $1,282
Cost Recouped: 90.7%
Steel is a great material for entry doors because it’s tough and low maintenance. It also comes in a wide range of colors, styles, and textures, so it’s easier for homeowners to find an option that best suits their needs. The protection you’ll get during harsh weather and energy efficiency a steel door provides all year long are some of the reasons you’ll recoup most of your total job cost.
Minor Kitchen Remodel
Job Cost: $20,830
Resale Value: $16,699
Cost Recouped: 80.2%
Kitchen remodeling can include a number of tasks, such as installing new cabinetry and hardware, and replacing countertops. Getting mid-price sinks and faucets, as well as repainting trim, applying new wall finishes, replacing flooring and upgrading a cooktop to a more energy-efficient model also fall under this category. Because kitchens mostly serve as the heart of any home, remodeling dollars spent in this project are usually well-recouped.
Deck Addition (Wood)
Job Cost: $10,707
Resale Value: $7,652
Cost Recouped: 71.5%
Although cost recouped dropped nearly 4% for 2017, you can expect many homeowners to make the most of their remodeling dollars for outdoor living spaces, especially deck additions. Decks add interest and drama to your outdoors, making them ideal locations for outdoor parties and intimate dinners.
Job Cost: $71,115
Resale Value: $49,768
Cost Recouped: 70%
Many basements are used for storing old furniture and other junk but this part of the home holds a lot of potential. In fact, investing in remodeling basements can lead to a 70% recoup rate. With remodeling project, you can transform your basement into basically anything, from beautiful bedrooms to recreational activity areas.
Job Cost: $18,546
Resale Value: $12,024
Cost Recouped: 64.8%
Remodeling your old bathroom is also a smart way to add to your home’s value. Even small improvements, such as installing modern fixtures, getting a new paint job, and replacing the tiles, can go a long way in achieving your goal. Apart from improving your home’s value, this project can also enhance your interior appearance and comfort, improving your living experience.
Keep in mind that you’re dealing with your home after all. Enjoy your spaces while you live there, but understand that not all upgrade projects will pay for themselves when it comes time to sell. It’s better to focus on projects that can make your home more attractive, comfortable, and energy-efficient, than anything else. To see how much you can recoup from projects that are not on this list, don’t hesitate to get in touch with a reputable remodeling contractor in your area.