by Teresa Larson, 20+ years year real estate experience
Keeping your home nice is obviously important to most people. Our homes are an extension of us. They are our safe haven, our sanctuary and our favorite place to come to after the day is finished! We like to update and remodel our homes. Some people do it more frequently than others. When it comes time to sell the condition of your home will matter to a prospective buyer. Your upgrades will add value to your home. The amount of return you get for your upgrades depends on the region you live in. Statistics show that different geographic areas have different outcomes when it comes to the return you might receive on your remodeling projects when you sell. The main thing to remember is that the renovations you do will not get you a 100% return on the money spent. Your remodeling projects are best done if you plan to be in the house for a long time. You do these projects for your own enjoyment.
The choice of materials in your project will play a big part in whether a future buyer likes your upgrades or not. Style and cost of materials play into this. Some upgrades can add value if you bring your home up to buyers expectations. An example of this would be adding a garage if there is not one or a second bathroom to a one bathroom home as most buyers now days want at least two bathrooms. Adding things that buyers may want can also mean less time on the market. This makes selling a lot more pleasant for you as a seller. Not so many showings and disruptions of your normal schedule.
When it comes to selling your home kitchen and bath remodels are valuable. A minor kitchen remodel would be replacing cabinet doors, counter tops, hardware and appliances with no structural or system modifications. Improving your exterior is important also as first impressions mean a lot. If you have wood siding that isn’t cared for or old aluminum/vinyl siding that is faded or missing pieces you should consider replacement. Basement and attic remodels are the least expensive way to add living space to a home. Adding a deck is a high value ratio when it comes to recouping cost in our area.
Below is chart showing the top remodeling performers for our area as far as recouping the most of what you put out for the project when it comes time to sell. Information stated comes from a 2013 Cost vs. Value report. The research team consisted of Realtor® magazine, The Farnsworth group a market research company and RemodelMax a publisher of online tools for remodeling.
|Project||Job Cost||Resale Value Added||Cost Recouped|
|Kitchen Remodel Minor||$16,991||$10,175||59.9%|
|Deck – wood||$8,119||$4,797||59.1%|
|Window Replacement vinyl||$8,959||$4,882||54.2%|
You may have heard some higher figures for recouping value but the ones listed above are specifically from information gathered in our Wasatch Front area. The market you live in plays a big part in which remodeling project will help the most in selling your home. The return you get on the money you invest in the remodel when you sell also is determined by regional preferences. The important thing to remember is that you should keep your home in good shape and do the improvements and renovations for your own enjoyment keeping the future in mind.
http://www.thisoldhouse.com/toh/article/0,,408045,00.html http://www.remodeling.hw.net/article/2013-cost-vs-value-report http://www.remodeling.hw.net/cost-vs-value/2013/mountain/salt-lake-city-ut/
©Teresa O Larson PC, 2014
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