What’s the return on investment for different home upgrades?
When you think about your home, what do you want to fix or change? Do you worry about getting your money back when you sell? Which projects give the highest return on investment?
Are you thinking about selling your house? If so, are you wondering which projects to tackle in order to make the most profit at sale?
When you remodel your house, there is a lot to think about! You want everything just perfect for you. But most people also consider whether they will get their money back upon resale, and that’s why we’re here to help! We are experts at helping you select for your property exactly which upgrades and remodel projects will give you the greatest return on investment.
1) Why do some remodel projects give a negative return on investment?
Have you researched the return on investment for a kitchen renovation or a bathroom addition? If you have, then you probably have found out that for most owners, the amount of money spent to make these improvements is actually less than the amount of additional profit earned upon resale of the house. WHAT?! But HGTV makes it look so easy!
It’s true. If you are unusually strategic about selecting your project and your materials, and you’re able to do all or most of the work yourself, then you do stand a good chance of making a profit. But it is a common practice to hire a general contractor to complete such projects, and the result is often that the budget for the upgrade is actually greater than the value added to the property.
This 2015 Remodeling Impact Report by NARI, the National Association of the Remodeling Industry, provides a very detailed explanation of the most common remodel projects, their cost, and their return on investment. If you’re contemplating a home remodel project, this is a Must-Read.
2) Which remodel project gives the greatest return on investment?
The Remodeling Impact Report researches and reports on projects ranging from a new master suite to a complete kitchen renovation. It includes a basement conversion to living area, attic conversion to living area, new wood flooring, hardwood floor refinishing, new front door, new garage door, new windows, new siding, and more!
Of all the options they studied, can you guess which provided the greatest return on investment for the property owner?
A new roof! Roof replacement was the property upgrade that gave the greatest return on investment.
3) Are there ways to upgrade the house that will help it sell faster?
Sometimes the interest in doing a few upgrades is not based on a a concern over dollar-for-dollar return. Many of us upgrade our homes for the sake of personal happiness, comfort, and personalization of the space. We want to improve the flow and livability of the space, and we simply want to be surrounded by the colors and styles that we like best.
Another common point of interest for home upgrade projects is to make the house sell faster. Most of us, when the time comes to sell, suddenly are caught off guard by how many projects we meant to do but didn’t get the time for. So, it’s time to pick a few select projects that will get this house sold fast!
According to the Remodeling Impact Report, the projects that do the most to increase buyer interest and sell the house fast, with a decent return on investment, include a new roof, new garage door, new vinyl siding, new vinyl windows, kitchen upgrade, and hardwood flooring refinish.
Consider these options as you select which home improvements to do next!
If you’re looking to sell your property soon in the Colorado Springs area, please contact us so that we can provide you with personalized, professional expertise and recommendations based on your specific circumstances, house size, location, and competition in the market. We want to help you maximize you return on investment!
Lauren Collier lives and works in Colorado Springs. Through her proprietary approach to listing and selling houses, she specializes in helping home owners maximize their profits by treating their property like an investment.
Use the form below to reach out to Lauren with any real estate-related questions…