Renovation projects when it comes to selling your home are not created equal. Learn more about which projects may have a great pay off and which will lose you money.
Fixing up a home can be stressful but it can also be one of the most exciting things a homeowner does. Fresh ideas coming to life, change, and just the fact its “new” is great but as a homeowner you should also be aware of the ROI. Especially if you’re plan is to renovate then sell. While there are not any guarantees on what the project will pay off, there are averages a homeowner can expect. The average return on a home remodel is 65%, however many projects net much less.
Adding A Deck
Decks are very common in Minnesota and most buyers feel underwhelmed if the home they’re looking at doesn’t have one. Decks allow home buyers to step out and truly envision all the fun they can have right in their own back-yard. However, the buyers feelings and excitement doesn’t translate to a great return on the sellers investment. On average, a deck ROI is around 75.6%. Composite decks believe it or not run lower. ROI on a composite deck average 64%.
Here in Minnesota one thing people love is their backyards. Probably because we only get to use them for part of the year. However, building that patio with fire-pit and all the bells and whistles may not give you the return you might imagine. On average a patio returns 48% of the investment. You might be better to put your money somewhere else if selling is on your mind.
Luxury Bath Renovations
Renovating a bathroom to include a new Jacuzzi tub and deep-dish round sink typically nets about 57% return on resale value. Because a luxury remodel can cost more than the addition of adding an entire bathroom to the home, homeowners are encouraged to downscale their efforts when it comes to their current bathrooms.
A minor remodel can heavily boost the return on investment, while still updating the look of the bathroom and improving the experience of those who use it. Changing out the hardware, replacing the lighting, and painting the walls or retiling the floors are all options that won’t break the bank. A mid-range bath remodel can return nearly 75% of the cost, much better.
Stone Veneer On the Front
This one may surprise you. Curb appeal is huge and often with curb appeal comes a stone veneer on the front of a home. Believe it or not a veneer project on average returns 97.1% of the investment! Like they always say…. curb appeal, curb appeal, curb appeal, or is that location, location, location? Well, they both work.
Some other cost vs value remodeling projects look like this:
- Garage door replacement 98%
- New entry door steel 92%
- Master suite addition 56%
- New roof 68%
- Siding replacement 77%
The rule of thumb for most homeowners is to remember that larger, more expensive projects won’t net them higher returns. Those looking to maximize the resale value of their home should look to smaller projects with more concrete value. Those who want to complete these renovations regardless of their ROI should view them as a way to increase the comfort and convenience while they’re still living in the home.
If you’re selling and would like some guidance on what to fix up or not feel free to contact The Derrick Monroe Group with the form below. DMG can offer solid advice and tips on how to maximize your return.
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