Remodeling Rewards: Cost-Effective Improvements For Home Sellers
The remodeling industry is booming, with homeowners coast to coast pouring money into their homes in order to make them as comfortable – and as valuable – as possible. The National Association of the Remodeling Industry surveyed homeowners in 2004 and found that nearly half (47%) of its survey respondents chose to remodel in order to boost their home’s market value. The majority of people surveyed did a remodel to update their homes aesthetically (79%) or address changing family patterns.
NARI’s survey reports that half of all remodeling projects cost $5,000 or less, and 23% cost between $5,000 and $10,000. Kitchen remodels are usually among the most expensive projects.
The benefits of a remodeling, adding on to your home, or replacing systems vary widely by market, housing type, and neighborhood, but Remodeling Magazine’s annual rankings weigh the cost of renovation against the amounted at resale. According to Remodeling, the top 10 renovations in 2004 and the amount of investment recouped were as follows:
|Major kitchen remodel||93%|
|Bathroom remodel, mid-range||90%|
|Bathroom addition, mid-range||86%|
|Bathroom remodel, upscale||86%|
|Window replacement, mid-range||84%|
|Window replacement, upscale||84%|
|Attic bedroom addition/conversion||83%|
|Bedroom addition, upscale||81%|
If you’re planning to sell in the near-term, you may not have the time or resources for a kitchen or bathroom remodel. However, even cosmetic changes, the sort a home staging professional would provide, can have positive effects on your home’s asking price. Fresh coats of paint, some minor landscaping, and de-cluttering rooms all give the buyer the sense that the home is move-in ready. Agents surveyed in 2000 by the real estate site HomeGain.com reported that the following presale improvements – for less than $2,000 – generated the most return on investment:
|Lightening/brightening rooms, washing windows||$86 to $110||769%|
|Clean and de-clutter home||$305 to $339||594%|
|Landscape and trim front yard and backyard||$432 to $506||266%|
|Repair electrical and plumbing problems||$338 to $381||196%|
|Spruce up decor, including flowers||$812 to $1,089||169%|
|Update kitchen and bathroom||$1,546 to $2,120||138%|
|Source: HomeGain.com’s May 2000 survey of about 2,000 agents in 46 states.|
Resources for remodeling
- National Association of the Remodeling Industry (www.nari.org) offers homeowners a free guide to hiring a remodeling professional, available if you call 800-611-NARI.
- Remodeling Magazine’s survey of 2004 home improvement returns