You’ll never guess which home remodeling projects generate the best return on investment for a homeowner (based on the 2017 National Association of Realtors® Remodeling Impact Report)! No, it was not a kitchen or bathroom remodel. While improvements to those rooms certainly result in boosting your sale price, you might not get back all the money you put in.
Here are the investments in your home that will bring you back the highest return:
1. Surprise! New Roofing
Womp, womp. I know. It’s really not sexy. But wait, you have to think about it from a prospective buyer’s perspective. What good is a new bathroom when water is splashing into it, and it’s not coming from a faucet? Most homeowners expect to do some remodeling to their own tastes when they are purchasing a new home. They want to do the fun stuff, but they want to know that the home is structurally sound to begin with. Knowing that they would have to replace the roof is one of the biggest turn-offs for a prospective buyer.
- Estimated cost of a new roof: $7,500
- Estimated cost recovered when the house is sold: $8,150
- Value recovered: 109%
2. Refinishing Your Hardwood Floors
It’s hard to understand what the previous owner was thinking when they tacked down that crimson wall-to-wall carpet over gorgeous oak floors. But finding hardwood floors beneath the surface is like finding hidden treasure. Shiny new floors are more classy, more hygienic, more durable, and they attract new buyers.
- Estimated cost of refinishing hardwood floors: $3,000
- Estimated cost recovered when the house is sold: $3,000
- Value recovered: 100%
If you don’t happen to have hardwood floors to refinish, installing new hardwood floors is the next best thing.
- Estimated cost of putting in new hardwood floors: $5,500
- Estimated cost recovered when the house is sold: $5,000
- Value recovered: 91%
3. Getting a New Garage Door
Who would have thought that a garage door makes any difference? But since a forward-facing garage door can make up a large percentage of what is seen from the street, an upgrade can have a big impact on the overall curb appeal. If it is in poor condition, looks outdated, or isn’t working properly, you may just send prospective buyers packing.
- Estimated cost of a new garage door: $2,300
- Estimated cost recovered when the house is sold: $2,000
- Value recovered: 87%
Other Projects with a High Return on Investment
Next on the list were new vinyl windows (more energy efficient), a new steel front door (more stylish and safe), new insulation (energy efficiency is a huge benefit here), and new siding. The return for each of these projects hovers at around 75% of the cost of the improvement.
While a kitchen or bathroom remodel can increase the value of your home by thousands of dollars, it will cost even more money to do the work. If you’re planning on staying in your home for a while, it may well be worth it, just for the enjoyment of it. But if you’re looking to get a return on your remodeling investment, the more practical projects will win the wallets (ahem, we meant hearts) of prospective buyers.
If you’re planning on selling a home in San Juan Capistrano, San Clemente, Laguna Niguel or Dana Point, The Reed Team would love to help. Contact us today!