Renovations: Good for Resale?

A recent issue of the well-respected trade publication/platform Remodeling reported on the top 23 major home remodeling projects. In fact, five of these renos offered more than 100% return on investment for homeowners. Here are five of the more interesting projects from the analysis for homeowners to think about:

HVAC conversion — While electric heat pumps are not the most glamorous, homeowners are converting their fossil-fuel-burning furnaces to this style. Heat pumps not only heat a home but cool it as well. This is good news for folks living in areas where homes run budget-busting air-conditioning systems all summer long. Consumers are seeking eco-friendly HVAC systems and are willing to shell out an average of $17,747 for the project. The ROI is an excellent one, estimated at over 100%, which takes the sting out of the initial investment.

Garage door replacement — One of the first things to impress a potential homebuyer are your garage doors. The curb appeal factor is priceless when replacing outdated doors with four-section doors running along heavy-duty galvanized steel tracks. Most times the replacement doors can be operated using your existing motorized garage door opener. ROI for this improvement is more than 100%.

Minor kitchen remodel — If you are not ready to tackle the expense of a complete kitchen makeover, a more reasonably priced cosmetic remodel may be just the thing to lift a dated kitchen out of the doldrums. Instead of replacing the cabinets and drawers entirely, consider refacing the front panels and replacing the handles and pulls with a more up-to-the-minute look. Install a new countertop or sink, replace the old floor, and repaint the walls to achieve a more modern kitchen to enjoy with family and friends. This minor remodel could net you more than an 85% return on your initial outlay.

Enhancement to your outdoor living space — Entertaining outdoors is one of the pleasures of owning a home. By adding a deck, you immediately expand your living space as well as opportunities for relaxation and for enjoying the outdoors. The cost of a deck can vary widely, based on size and materials, but the average cost is about $8,000. You may enjoy it and that makes it worthwhile in itself, but the ROI is only about 50%.

Sooner or later, you may find yourself among the millions of homeowners who remodel their homes each year. Be an informed consumer and consider the return on your investment before you begin.

Contact your CENTURY 21® Select Group Realtor for more information to help you make these important and rewarding decisions: (570)689-2111.