5 Home Improvement Projects that Increase Value
You’ve set the money aside and now you’re ready to jump into renovations before putting your home on the market. While we often think that buyers want gleaming white kitchens and marble bathrooms, these investments may not always yield the return on investment you were hoping for.
Before choosing which projects are best for your home, leverage Emprove’s platform to estimate the cost of your project. Then work with an appraiser to understand how much of your investment will translate into increased home value. Take a look at houses on the market in your local neighborhood to compare what they are selling for and to see which upgrades and renovations are complete. While your neighbor might have two dishwashers, consider these projects and their return on your investment before breaking out the hammer.
Buyers take notice at renovated bathrooms, because it means one less project to tackle when they move in. Yet, this project significantly varies in cost and return depending on where you live. A mid-range bathroom remodel in the Northeast runs about $30,000 and resells at upwards of 70% of costs recouped. Yet, in cities like Las Vegas, Phoenix and Salt Lake City, bathroom remodels are slightly more affordable at $20,000 with more than 50% of costs recouped. It’s critical to examine average returns rates in your market, especially for projects like a bathroom remodel, before you set a budget for the project.
Luxurious backsplash, granite countertops and top-of-the-line hardwood floors are all on our wish list for kitchen renovations. Yet, a full kitchen remodel can cost between $40,000 to $125,000, depending on the quality of materials (i.e. practical, upgraded, luxurious, etc.) Consider scaling back the expensive backsplash and finishes for a more practical remodel which runs closer to $60,000 with almost 60% of costs recouped.
While kitchens and bathrooms add aesthetic to your home, they tend to lose their allure if you have a crack in your foundation or crossed wiring. Since infrastructure issues are often hidden in a home, they can halt the close of your house when it comes time for an inspection. Because infrastructure projects are often tied to safety, it’s key to make sure you prioritize these renovations before you focus on curb appeal, especially as these remodels make a dent in your budget. The national average to replace your home’s foundation will run you $5,000. Combined with electrical rewiring, installing new plumbing pipes and hiring an architect, this adds at least an additional $8,000 to your infrastructure costs.
4. Siding replacement
Similar to your home’s infrastructure, replacing your home’s siding makes a big difference during the inspection process. Aesthetically, tired siding can make your home look run-down. New siding adds curb appeal and is a great investment to get potential buyers in the door. Siding replacement also has historically high recoup rates at more than 80%. Keep in mind that full siding replacement of your home averages around $15,000.
5. Deck addition
Adding a wooden deck amplifies your backyard and almost all buyers can appreciate this feature, regardless of geographic location. It allows potential buyers to easily envision themselves outside on the deck drinking coffee or hosting a barbeque with friends and families. Wooden decks also produce tremendous value and return. With a national average of 80% of costs recouped, deck additions are a worthwhile investment at $10,000.
Time to check out those nearby open houses and determine the best projects for your wallet and neighborhood!