Home remodeling can be a costly and extensive process. If you’re considering remodeling a house to increase the value, check out these three areas that have the biggest impact, and big and little jobs that will help you get a good return on investment:
1. Curb Appeal and Exterior Home Improvements
Vinyl window replacements will run about $11,217 in San Diego but have resale value of about $11,883. Replacing the garage door, siding, front door, and windows will also return about 72% on your total investment.
Entry Door Replacement
Putting in a steel, mid-range entry door replacement will retain 97% of its value upon resale and will bring in a 38% ROI. The average cost of this project in the San Diego area is about $1,300, with a resale value of about $1,529. Even if this price is out of your range, sanding and repainting the front door in an appealing color may give you the same return.
Garage Door Replacement
Replacing your old garage door with a mid-range steel door cost about $1,745 in San Diego but brings in a resale value of about $2,042. As a national average, this home improvement gets about 24% ROI.
Adding Color to the Flowerbeds
While a full landscape remodel is pricey, it’s easy and economic to make small changes to the yard to add curb appeal. Keep your yard weeded and trimmed, and maintain curb appeal by adding color to the flowerbeds. If you have gardening friends who split their perennials in the spring, you can score some splittings for free, which will grow into free flowers.
2. Additional Functional Space
Most homeowners and potential buyers are looking to maximize functional space. Two of the best ways to maximize space is to remodel attic space into a bedroom and to upgrade to a finished basement.
According to the most recent Cost vs. Value report, an attic bedroom remodel will retain 84% of its value and get at least 17% ROI upon selling (exact % depends on city). RealEstate.com adds that the national average for an attic bedroom remodel cost is just over $50,000, but it could gain up to a 72% return on investment when you sell your home.
[image by Kyle Murphy]
A basement remodel will retain about 78% of its value over time and will recoup about 110% of its cost in the San Diego area. The average cost in San Diego is $74,614 for this project, but the value upon selling is about $81,989. This big project alone could put about $7,000 in your pocket when selling.
3. Kitchen and Bathroom
The kitchen and the bathroom are two of the most important areas in the home for homeowners and potential buyers. In 2011, bathrooms began edging out kitchens for the most important space in the home to buyers, so if you only have the budget for one, you may want to start with the bathroom remodel.
Minor Kitchen Remodel
Even though it says “minor,” this kind of kitchen remodel still has an average national cost of $20,000 for new cabinet doors, appliances, countertops, sink, faucet, paint, and hardware. With a cost recoup of about 83%, a minor kitchen remodel can add major dollars to the home’s value. Be careful, however, not to invest too much money in ratio to the value of the home. As a general rule, look to spend about 25% of the home’s value for a new kitchen remodel.
Remodeling Magazine estimates that adding a new bathroom to the house will cost about $50,000 on the West Coast but will recoup almost 67% of the cost when selling. If remodeling an existing bathroom, look to spend about 12-15% of the home’s value to ensure that your ROI won’t be pale in comparison to what you spent.
If you don’t have $20,000+ to spend on a kitchen remodel, try sanding and repainting cabinets, updating the countertop and faucet, or getting new appliances. Do what will fit your budget, and your kitchen will appeal more to home buyers.
If you can’t afford to add a bathroom or do a full bathroom remodel, try upgrading the bathroom with new fixtures, fresh paint, and new flooring. Your home will show better to potential buyers if it looks updated and modern.
Home remodeling doesn’t have to be scary, but it should be smart. Calculate your budget and compare it with the expected return on your investment to see which improvements will get the maximum benefit.