Many times we work with sellers who ask us whether or not remodeling their home will help sell it or increase the value of the home. While certain remodeling or replacement projects may enhance the property I typically to not hear buyers say they are willing to pay for those improvements. Many buyers view remodeling as work that was needed to be done in order to maintain the home; and to a certain extent they are right.
Before you launch into any major remodeling projects take a look at the latest data as prepared by Remodeling Magazine and REALTOR® Magazine as reported by United Press International (02/20/12).“The resale value of remodeling projects has decreased over the last couple of years. The number has fallen to $10,688 from $17,857 in 2008 for bathroom remodels and to $40,126 from $43,030 for kitchen remodels, with cost-to-value ratios slipping to 57.2 percent and 68.7 percent, respectively.”
“Overall, the top 10 remodeling projects for 2011-12 have a cost-to-value ratio of 71.6 percent, down from 75.8 percent for 2010-11. Replacement projects are more valuable these days because they boost curb appeal. The top five improvement projects and their cost-to-value ratios are siding replacement, 78 percent; entry door replacement, 73 percent; attic bedroom, the most cost-effective means of adding a bathroom and bedroom, 72.5 percent; minor kitchen remodel -- the least expensive way to jazz up the kitchen -- 72.1 percent; and garage door replacement, 71.6 percent.”
“The five improvement projects that add the least value compared to their cost are home office remodel, 45.8 percent; backup power generator, 48.5 percent; sunroom addition, 48.6 percent; master suite addition, 52.7 percent; and bathroom addition, 53 percent.”
There you have it. Instead of major surgery consider doing some lipstick and rouge (paint, clean, de-clutter, organize) to your property. And don’t forget that you will undoubtedly reap some benefit and enjoyment as a result of any improvement including a remodeling project. You can’t put a price on that.
Life Is A Gift…Live It!
Gary Nathan
Amanda Mavis
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