Home sellers often make upgrades to their properties before putting them on the market, in hopes of increasing the sale price. It’s hard to determine exactly which renovations are worth the investment. You may get the money back when you sell the house or you may end up spending more than you recoup.
To help you make that determination, Remodeling 2021 Cost vs. Value Report1 (www.costvsvalue.com) compared the average costs for 22 remodeling projects with the value those projects retained at resale.
None of the renovations completely paid for themselves, but here are some of the upgrades that did increase the home value:
- Redo the roof. The exterior of your home is the first thing the buyer sees and a new roof makes a great first impression. Even online buyers are looking at your real estate listing to see when your home was constructed and when your roof was last replaced (if at all). Although it can be expensive, keeping an old roof during the sale can result in less offers, more time on the market and having to eventually reduce the listing price anyway. Asphalt shingles cost an average of $28,256 to replace and have an average resale value of $17,147. That’s a 60.7 percent ROI.
- Minor kitchen remodel. Ask any realtor and they’ll tell you: Kitchens and bathrooms sell houses. A kitchen remodel may sound intimidating, but it doesn’t have to be a complete overhaul. For example, you might leave cabinet boxes in place, but replace the fronts. Also, consider upgrading your oven and fridge with newer, more energy-efficient models. Dated laminate countertops should also be replaced. The national average for a minor kitchen remodel was $26,214 and the resale value was $18,927. That’s an ROI of 72.2 percent.
- Bathroom remodel. The right water pressure and temperature can make a shower feel like an oasis. Simple updates can go a long way, such as a single-lever temperature and pressure-balanced shower control. Other updates to consider include a new, porcelain-on-steel tub, standard white toilet and solid-surface vanity counter with sink. The national average for a midrange bath remodel is $24,424 and the resale value is $14,671, which is a 60.1 percent ROI.
- Garage door replacement. If your garage door is in working order, you’ve probably never considered a replacement. However, if you’re selling your property, a new garage door can really enhance your curb appeal. The average national cost to replace a garage door is $3,907 and the resale value is $3,663. That’s an ROI of 93.8 percent.
- Front door replacement. Another upgrade that increases property value is replacing your front door. Consider getting the garage and the front door done at the same time, in order to use the same shade of white for both. This may seem like a minor update, but a new front door will really brighten your home’s entryway for showings. Consider replacing it with a 20-gauge steel unit and making sure it’s factory finished and the same color on both sides. Entry door replacement costs a national average of $2,082 and has a $1,353 resale value, which is a 65 percent return.
You should also consider the demographic of your buyer before making upgrades. For example, an Angi’s List study found that males in their 20s are most likely to prefer showers, whereas females in their 40s are most likely to prefer baths. Additionally, younger couples might be interested in technology upgrades (such as smart home technology), whereas older buyers may be looking for convenience and accessibility, like wide entryways for walkers or walk-in showers with slip-proof flooring.
Source: © 2021 Hanley Wood, LLC. Complete data from the Remodeling 2021 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
|cookielawinfo-checkbox-analytics||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".|
|cookielawinfo-checkbox-functional||11 months||The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".|
|cookielawinfo-checkbox-necessary||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".|
|cookielawinfo-checkbox-others||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.|
|cookielawinfo-checkbox-performance||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".|