We acquire a stronger taste for spring as the weeks go by and with that comes open house fever and an impulsiveness from some homeowners of wanting to sell now. The desire to sell can be met with an overwhelming awareness that a home isn’t quite ready for the market yet. We get it, the struggle is real. As a homeowner, you want to present your home in the best possible light from its initial offering, whenever you and your real estate professional deem it appropriate to market, given your unique circumstances.
If you are contemplating a spring or summer release, but you realize certain renovations are necessary to maximize your home’s value (while not over-improving), there may still be time to upgrade where suitable and put your home’s best foot forward. So what renovations will give you the most bang for your buck? Every home and neighborhood are different, so it’s important to recognize what may work for one house, may not for another down the street or across the county. It’s also important to take the time to discuss possible upgrades/options with your REALTOR® and even perhaps a home-staging expert.
For your consideration, we’ve highlighted 6 home renovations with the highest return in 2018*:
Increasing your home’s energy efficiency is of vital importance to many homeowners. You can also reap benefits on the other end as well – lower utility bills. With the low cost of entry to complete this project and the high rate of return combined with the potential to keep your heating/cooling costs down, this renovation is a no-brainer to many who need it.
Cost estimate (average): $1,300-$2,100
Cost recuperated (average): 76%-108%
Stone Veneer (Manufactured)
Enhancing curb appeal is critical for enticing prospective homebuyers to enter your home. Whether they are driving-by the property or they’ve seen it for the first time online, stone veneer has the power to attract buyers. This is a project with a much higher-than-average ROI.
Cost estimate (average): $7,800-$8,400
Cost recuperated (average): 89%-$97
Steel Front Door
Another job that can boost your home’s energy efficiency as well as its curb appeal is upgrading your front door. You might be able to get away with refinishing and repainting it a bold color, but if not, this is the next best option.
Cost estimate (average): $1,400-$2,000
Cost recuperated (average): 75%-91%
Garage Door (Replacement)
Sometimes it’s time for a change and better functionality helps as well. This remodeling job should also improve a home’s curb appeal depending on where the garage is located. Note that its relatively low cost makes it attractive to pursue.
Cost estimate (average): $2,300-$3,600
Cost recuperated (average): 77%-87%
Wood Deck (Addition)
Relaxing outdoors on your very own deck can be exciting for both homeowners and buyers alike. While there are options like Trex® decking, which have their own added benefits, a wood deck addition can give you a decent return on your investment.
Cost estimate (average): $10,700-$11,300
Cost recuperated (average): 72%-83%
Kitchen Remodel (Minor)
Kitchens are one of the top three interior areas of a home that buyers gravitate toward when they become serious about their home search. It’s important not to overlook this area of your home. Do you have outdated cabinets, countertops and appliances? Does your kitchen look like something out of the 1970s or 80s? A renovation here might be necessary to attract the right type of buyer.
Cost estimate (average): $20,800-$35,000
Cost recuperated (average): 57%-81%
It’s important for homeowners to recognize that for almost every home project imaginable they’re not going to get back financially what they’ve put in to that renovation. These are only estimates and average ranges of cost and ROI. Here in Northeastern Pennsylvania, materials and labor can be cheaper too. Before you decide to undertake renovations throughout your home, you should keep in mind how long you’ve lived or plan on living in your home, since you’ve purchased it. A good rule of thumb, would be ten or more years – which is the present standard for tenure in a home. If you have lived in your home or plan on keeping it for ten or more years, remodeling it can surely add value. Again, this is a conversation you need to have with your REALTOR®.
For further information about the costs for these and other projects in and around the home, click here. If you would like to reference either of these reports for more details, see below.
*These ROI are based upon two reports, Remodeling’s 2018 Cost Versus Value Report (Hanley Wood Media) and 2017 Remodeling Impact Report (National Association of REALTORS®). It’s important to understand the cost of these projects. What you recover from them are influenced by multiple factors, including design, materials, location (in NEPA versus elsewhere), age of the home, condition of the home and the preferences by you, the homeowner.