Getting the Best Home Remodeling Bang for Your Buck
Article by Shannon Cistulli
With spring in full bloom many of you may be thinking about some basic home maintenance or remodeling projects. So how do you know which remodeling projects will bring you the highest rate of return?
As a Realtor® it’s important for me to know how to add the appropriate value for updates to a home. In order to do that I review a variety of surveys, articles and studies that break the data down into geographic region for accuracy. These studies and survey sites indicate a 95% +/-4.8 confidence level. Before you spend your hard earned money let me share what I know.
These are some of the projects that bring the highest rate of return in the Los Angeles area.
The ever popular KITCHEN remodel:
Minor remodel job cost $25,000 nets a recoup of over 100% plus.
Major remodel job cost $50,000 to $75,000 nets a recoup of 80%.
Upscale remodel job cost $100,000 to $125,000 nets a recoup of 75%
Kitchen trends are basic neutral tones, materials that are untraditional and quirky, blending old and new elements while also being clever and efficient.
Midrange remodel job cost $20,000 nets a recoup of 85%
Upscale remodel job cost $65,000 nets a recoup of 70%
The neutral, natural and easy to clean materials are in. The design vision is a Spa like retreat. For the Midrange jobs walk-in- showers are replacing the jetted tubs in popularity.
Surprisingly a NEW GARAGE or NEW FRONT DOOR replacement:
Midrange Entry Door replacement cost $1,000 to $3,000 nets a recoup of 100%
Midrange Garage Door replacement cost $1,500 nets a recoup of 85%
Upscale Garage Door replacement cost $3,500 plus nets a recoup of 100% plus
This can be a quick and easy replacement project that nets outstanding return. Choose door designs that match the architectural style of your home for the best return.
ADDING MORE SPACE:
Wood Deck Addition average job cost $14,000 nets a recoup of 72%
Composite Deck Addition average job cost $20,000 nets a recoup of 67%
Patio Addition average job cost $10,000 nets a recoup of 90%
Family Room Addition job cost $100,000 nets a recoup of 83%
Enclosed Attic average cost $30,000 to 50,000 nets a recoup of 60-75%
Every 1,000 square feet of added room space boost the sales price of a home by more than 30% on average according to studies by the National Associations of Realtors® and possibly even higher in some of California’s hotter real estate markets.
Replacing Roofs and windows were also high on the list at around 65-70% ROI.
Lower on the list were home office remodel and master bedroom suite addition with an average 50% or less ROI. Midrange and upscale bathroom additions with an average of 65%.
Some people may think that all home improvements are good; this is not always the case for example I enjoy looking out onto my swimming pool but not everyone feels the same way, others may see it requiring too much maintenance and/or a safety issue.
In Glendale and surrounding communities many of our homes were built years ago and may be in a historical district. Think twice before changing a home’s character. To reap the highest rate of return I suggest using materials and designs that blend with the architecture of the home or property, for example you may not want to install ultra-modern fixtures in a 1930’s character home. Fortunately there are a lot of options to choose from when shopping for remodeling materials in Southern California. Be sure to check with the City of Glendale to determine what permits if any will be required for your project.
For some homeowners, home improvements are more about living comfortably or living their dream rather than return on investment, but it never hurts to financially maximize one of your largest assets. Happy remodeling!
Sources: National Associations of Realtors and www.remodeling.hw.net/cost-vs-value