When homeowners embark on a remodeling project, the question I hear most often is how will this affect the resale?
This is a legitimate concern. According to Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com), if you plan to sell your home in a few years, some home improvement projects are a better investment than others.
Remodeling 2014 Cost vs. Value Report surveys the average cost recouped at resale for thirty-five home improvement projects in 101 cities. Both midrange and upscale versions of the projects are reviewed.
First impressions really do matter when selling your house. According to the recent Remodeling report, an entry door provides the biggest return on investment. In Nashville, the cost recouped at resale is a whopping 156.4%!
CURB APPEAL TRIUMPHS
In addition to an entry door, new garage doors and siding are a wise investment. Each recoup over 90% of their cost proving again that curb appeal is not just real estate agent talk!
IT’S ALL ABOUT THE KITCHEN
Kitchens sell houses, and the second most rewarding project in Nashville is a minor kitchen remodel. With a budget of under $20,000, this project earns back 99.9% of its investment and includes replacing countertops, cabinet fronts, flooring, and some appliances.
MIDRANGE TRUMPS UPSCALE
On the other hand, a kitchen remodel with a $105,000 budget only returns 72.0% of its cost. Almost all high end projects recoup less than their lower-cost counterparts. Of the top ten most valuable projects, eight are midrange.
The least attractive projects, those which recoup less than 60% of their investment, are a home office remodel (includes custom cabinetry) and a sunroom addition.
WHAT DOES THIS MEAN FOR YOU?
If you are planning to stay in your home for many years, renovate to your heart’s content. If you may sell in a few years, consider the scope and budget of your renovation carefully.
Some “hot” neighborhoods in Nashville are immune from this kind of analysis (anything with a roof sells.) But for the most part, enhancing your home’s curb appeal and modestly priced interior remodels provide the biggest bang for your buck. Before embarking on a renovation, talk to your real estate professional.