Not all home remodeling projects are created equal in the eyes of the resale market.
The annual "Remodeling Cost vs. Value Report" released by the National Association of Realtors breaks down the return on investment homeowners can expect to recoup on common renovation projects.
Keep in mind that these numbers are generalizations, impacted by market forces, neighborhoods, and the extent of repairs. The percentages are merely averages. But they can help as guidance when prioritizing home projects.
For example, replacing a front door, which typically costs around $1,200, averages a 70 percent return on investment for the homeowner. Find a great deal on that door to save a few hundred dollars, and that return on investment could nudge closer to 100 percent.
The projects that saw the largest returns were those typically deemed necessities – like a front door – or those that increased the overall usefulness of a house, such as an added bedroom or modernized kitchen. Adding rooms that not all homeowners need – such as a sunroom or home office – saw less than a 50 percent return on investment.
Thankfully loan products such as the 203k loan that RenovationReady specializes in cover many cost-effective projects. Knowledgeable customer service representatives can work with homeowners to avoid years of regret from the deadly sins of home remodeling. Projects outside the stipulations of such loans may not be in the homeowners' best interest sometimes, if return on investment is a concern. But contact RenovationReady for more details.
Have questions? Learn more about how RenovationReady® helps homebuyers and homeowners navigate the renovation process.