When you do any home improvement, you probably figure it’s also going to improve the value of your home. And it probably will improve the value… but, probably not as much as it cost you.
In other words, if you spend $1,000 (for example), it probably won’t improve the value by $1,000 or more. Statistically speaking, it will probably only improve the value by a fraction of that amount.
So, the question becomes…
Is it even worth doing any home improvements!?
Not to sound wishy-washy, but the answer is…
Yes and no. It depends on a lot of factors. We’ll touch on that more at the end of the article.
But for now, let’s just take a look at the top 7 home improvements, according to the 2017 cost versus value report to start making some sense of it all.
According to the 2017 Cost vs. Value Report, adding fiberglass insulation to the attic costs on average $1,343, but you’ll recoup $1,446.
Doesn’t sound all that exciting. When you think home improvements, you probably think of remodeled kitchens and baths being the biggest and best improvements to make (and they might be for you). But nope, according to the report, your best bet is to add insulation.
Pretty interesting, considering no buyer has ever walked into a house, gasped, and said, “Honey, look at this! They added insulation!” Yet, according to the report, it’s what’ll be the best money you could spend to add actual value to your home, and your bank account.
2. New entry door
Replacing your entryway door with one made of steel may set you back an average of $1,413, but you’ll get back $1,282, according to the 2017 Cost vs. Value Report.
So, at face value, it looks like you actually lose a few bucks…
So, why would you do it?
If your new door is more energy efficient, it’ll probably also save you some money on heating and cooling. It’s just tough to say how much exactly.
But the big X factor is how much your improved “curb appeal” will add to the sales price, when you sell your home. Again, that depends on a lot of other factors.
3. Manufactured stone veneer
On average, adding manufactured stone veneer will cost $7,851, but you can expect to recoup $7,019, or 89.4 percent, of that.
Obviously, this is another one that loses you money, at face value.
So, why would you do this home improvement?
How about, because you simply like the way it looks. Obviously, if you don’t like the way it looks, don’t do it. But, if you do, you’ll enjoy the home improvement. It isn’t all about making money on the money you spent. Sometimes it is about getting back a nice chunk of what you spent, on something that you wanted and enjoyed during the years before you sell your house.
4. Minor kitchen remodel
If you have a functional but outdated kitchen, you may harbor fantasies about beginning a total renovation. However, you don’t need to break the bank to make some valuable upgrades that’ll pay off in the long run. Consider swapping out old appliances for energy efficient ones. You can leave cabinet boxes in tact but replace doors or hardware.
The average minor remodel costs $20,830. As much as you’ll love the look and convenience of modern amenities, you’ll also enjoy knowing you can regain an average of $16,699.
This surprises a lot of people outside the real estate industry (and even some in the industry!).
Almost everyone thinks kitchens are the best thing to renovate, and will increase the value of a home. Again, it will add value, but just not as much as it costs.
So, this is another one where there’s plenty of reason to do it, simply because you will enjoy the benefits of the improvement during your ownership.
Just don’t tack on every penny you spent on the remodel onto your asking price when you sell. That’s not how this works. That’s not how any of this works.
5. New garage door
On average, a new garage door costs $1,749, but homeowners recoup $1,345, representing an almost 77 percent return on investment.
Chalk this one up to the X factor of added curb appeal as well, when it comes to justifying spending the money.
But it also just boils down to your sanity. When you have a garage door that doesn’t open or close right, or when you want it to, it can drive you nuts. That’s gotta be worth the 33% you don’t get back when you sell.
6. Siding installation
The elements wreak havoc on your home’s exterior. If your place is looking a little worse for wear, it could be time to consider siding, which provides a fabulous facelift.
But, more than simply a cosmetic upgrade, siding can protect your home from heavy rains and damaging snowstorms, making it an investment with a multi-pronged pay-off.
The average cost of installing siding is $14,518 of which you should get back $11,093 at resale, according to the 2017 Cost vs. Value Report.
Starting to see the trend? There are benefits to doing any home improvement, but you just can’t expect to get every dime you spend back.
7. Adding a wooden deck
Decks are ideal for outdoor entertaining. Depending on the size, you may feel as if you’ve just added significantly to your living space — especially if you live in a climate where you can use it for much of the year.
The average wooden deck will set you back $10,707, but you’ll get back $7,652, or 71.5%, when you sell.
OK, with all of that said…
These reports are based upon National and regional statistics. The thing is, real estate is extremely local. Like, down to the very street you live on local… And there are so many factors that will affect how much return you’ll get on any given project, in any given area, on any given house.
It may make sense for you to do a particular home improvement. It may not. It depends on your local market. It depends on the local supply and demand of homes. And it depends a lot upon what your personal situation is, and what your short and long term plans are.
So, the best thing to do when you’re considering any home improvement, is to reach out to your local real estate agent, and ask him or her for input. Considering they probably won’t charge you a dime for their time and insight, that’s going to be the best cost versus value you will find when it comes to home improvements.
RE/MAX Prime Properties