Renovations & ROI
As a homeowner, it’s important to be aware of which home renovations add the most value, especially if you’re planning on selling your house. According to the 2019 Remodeling Impact Report developed by a team of National Association of Realtors members also known as the National Association of the Remodeling Industry, these are the top renovations that will give you the highest return on your investment.
- New Roof
- New Wood Flooring
- HVAC Replacement
- New Front Door
- New Garage Door
The exterior of a house is the first thing buyers see when searching for a home. Upgrading your roof or siding will ensure your home leaves a great first impression. If buyers think the roof will need replacing soon, they may be apprehensive to make the purchase. Making the repair prior to selling will actually add more value than the cost to have it done. According to surveys, cost recovery on new roofing was 107%.
If your floors are in obvious need of replacement or repair, buyers immediately notice and flooring costs become a huge concern. New wood floors may come with a price tag however on average, the return value is 106%. If your wood floors are solid but could use a refinish, this will provide a 100% ROI.
HVAC replacement is a big expense and if your home is in need of one, buyers will insist on it. The return on this investment isn’t quite as large however you can definitely count on less resistance and a quicker sale. The NAR report states an average cost of $8,200 may get an ROI of $7,000. The sooner you make this repair, the more benefits you’ll have the advantage of receiving. For example, you’ll notice better functionality and improved energy efficiency.
Finally, as we said before, the exterior appearance and condition of your home is extremely important to home buyers. Doors that are old, difficult to open/close or in rough shape will give your home an undesirable appearance and cause concern about the condition of the rest of the home. New garage doors have a recovered cost of 95% and your front door will average a return of 74-75%
Successful remodels are dependent on many factors and these are average estimates. While many homeowners find remodeling and updating their home a necessary part of ownership, others find it a hassle and are overwhelmed at the thought of taking on such projects. It’s important to consider what you are willing and capable of taking on when buying and/or selling a home. If you need advice, give the Weil Team a call or message us at any time.
Source: NAR, NARI
