Wednesday, May 4, 2016

Home Upgrades that Get Some Return on Your Investment

Home Upgrades that Get Some Return on Your Investment

We all want to spend our money wisely. In the Real Estate world, that means investing money in your home to improve appeal inside and out so that it will sell quickly and at the highest possible price.

According to Remodeling magazine, the average return on home-improvement projects was 6.7% higher than the previous year. This beat out inflation by a significant margin

Simple replacements might give you a better return than a major remodeling project, usually about 4% more.

Returns will vary by region.  Areas of higher prices and job growth can have a higher payback.

The most telling statistic in my opinion: the average return at resale (national average) for 30 different surveyed projects was 64%.  That is up 2% from 2015.  That means you will get back $64 for every $100 dollars you spend if you sell your home within 1 year after completion.

One thing to always remember when spending money on your home - when replacing something, there was value in the pre-existing "something", therefore you will not get 100% return. Also, you will get value from the use of that improvement - so enjoy it while you  can!

Here are some popular projects and average return:
Insulating an attic (from 0) - 117%
Replace entry door - 91%
Refresh kitchen (note, NOT a remodel) - 83%
New siding - 75%
Add a deck - 75%
New roof - 72% (pray for hail and an insurance claim!)
Basement remodel (from unfinished) - 70%
Add family room - 68%
Renovate bathroom - 66%

This information was gleaned from a MoneySaver article in AARP Magazine

#homeimprovement #realestate #housing #remodeling

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