What Can Remodeling Do For the Resale Value of a Home?
Remodeling for resale and remodeling because you have always wanted that ballet studio with neon floorboards in your basement are two very different things. If you know that you are going to be selling your home in the near future (less than 5 years) it is important to know that not all remodel projects are created equal and in fact, some can make it more difficult to sell your home when you decide the time is right. Knowing which projects will make your potential buyers break into song and open up the checkbook can be a key element of your quick home-selling strategy, especially in tougher economic times.
It's all about first impressions. And if you (and your house) can make a good one, that is one more step you are in headed in the right direction. Having new(ish) siding, a welcoming front door, and some fresh paint on the outside of your house is one area of remodeling that always pays back. Add in some potted flowers and a welcome mat and your house sends off waves of domestic bliss to your buyers.
Bathroom & Kitchens
The idea that you have always heard about kitchens and bathrooms selling house...well, it's true! The good news is that it doesn't have to be a major kitchen and bathroom remodel to get your money back out of it when you sell. In the kitchen, where most families see themselves spending a good bit of time, having a good layout and up-to-date finishes are key. According to Remodeling Magazine's Cost Vs. Value Report for 2011-2012, even a minor kitchen remodel can recoup about 75% of the cost when you go to sell. In the bathrooms, keep it simple and neutral, focusing on good lighting and modern fixtures.
You know how you like to hang out on your deck on a crisp fall night? Read the paper on it during cool summer morning? Yeah, well, your buyers do too, so adding a deck to your house is a remodeling project that will increase your resale value. Remodeling Magazine's Cost Vs. Value Report gives this project between a 67-77% return on your investment. That's pretty good, considering you might get to enjoy a few relaxing nights on it before you make your move as well.
Believe it or not, converting attic space into a bedroom is considered one of the best remodeling projects in terms of return on your investment. It goes beyond cosmetic enhancements and actually adds more living space to your house, which buyers will love.
If you know you will be moving in the next few years and need every dollar of your remodeling project to count, then there are a few projects that you probably shouldn't consider: swimming pools, a new roof, central air conditioning, sunrooms, and luxuries like a tennis court or gourmet kitchens. These remodeling projects might be fun, but as far as resale value goes, these are considered low-value projects and in some cases (swimming pool) might turn buyers off to your home. In our current buyer's market, having done the right remodeling projects will set you ahead of your neighbor's not-quite-as-shiny homes and allow for a sale in a shorter amount of time and for a higher price, allowing you to head off to your next home with a little jingle in your pocket and a smile on your face.