The inaugural Remodeling Impact Report examines 20 home renovation projects, analyzing what they potentially return at resale. The report comes courtesy of the National Association of Realtors, or NAR, and the National Association of the Remodeling Industry, or NARI.
“In the past, NARI data suggested that a complete kitchen remodel could recoup 75% to 80% (at resale),” says Steve Carasso, director of marketing and communications for NARI. But this report pegged the resale return at 67%, he adds. That means kitchens didn’t make the top 6. Neither did bathroom remodels.
Here are the top 6 home improvements, ranked (from lowest to highest) by which renovation returns the highest percentage of your investment.
New Vinyl Siding
Replacing old siding with new vinyl siding costs about $12,000 on average. At resale, homeowners get back about 83% of what they spend.
While it’s something that can improve the home’s appearance, it’s probably not the kind of thing you’d do just before putting the home on the market—unless it’s damaged, of course. If it’s just dirty, a good power washing is all you need.
New Garage Doors
For many street-facing homes, a garage door is the “nose on the face of your home,” says David Pekel, national treasurer for NARI and the president and CEO of Milwaukee-based Pekel Construction & Remodeling.
A new garage door “has traditionally ranked as one of the highest returns on investment,” he says.
The cost averages $2,300 and returns about 87% at resale, Homeowners are opting for natural wood, doors with more windows, and carriage-style doors, which are currently trending.
New Wood Floors
Installing wood floors will get you most of that expense back when you sell, according to the remodelers’ report. The average cost of installing new floors is about $5,500. Homeowners recoup about 91%.
Recently, some wood flooring has been plagued by controversy over high formaldehyde levels and off-gassing. If you can, opt for hardwood over engineered products, some of which contain formaldehyde. If you prefer engineered wood, ask a lot of questions, and find a knowledgable, competent pro who can tell you what’s in various options.
No one comes out of an open house excited about the insulation. But an insulation upgrade does add value. On average, it will cost about $2,100, and homeowners can recoup about 95% at resale. Many homes are now being evaluated by energy efficiency as a matter of routine.
Refinish Hardwood Floors
Want to get back all of your home renovation dollars? Refinish those hardwood floors.
Refinishing costs an average of $2,500 and that’s about what it adds to home value, the study finds.
Among home renovations that return the most, replacing the roof tops the list.
A new roof will set the average homeowner back about $7,600. But on average, homeowners recoup more than that —about $8,000. That’s a 105% gain.
It’s the only renovation project in the report that returned more than it cost. But, as anyone who’s been through it will tell you, there are plenty of easier ways to make $400.
Article courtesy of BankRate.com