Get the Most Bang for Your Buck
How much should you spend on renovating your home? Whether you are a new homeowner, a seller preparing your home for the market, or an investor remodeling quick flips, where should you invest your money for the greatest return? Surprisingly, many renovations will not yield as much value as the cost of the improvement. For example, in the Sarasota, FL area, adding a pool costs approximately $30,000 or more, but will only add an estimated $10-$15,000 in value. Yet, there are improvements that will yield you more bang for your buck. When selling a home, one of the biggest returns on your investment can be found in a new front door, but keep in mind that it has to be a door that compliments the style of the home. In some cases, a freshly painted door will do the job. When considering renovating, you must also take into account how long you plan on staying in the home. The value to you as a homeowner matters as well, but as a rule of thumb, if you plan on living in it for an extendedperiod of time, then it is wise to limit your investment to 30% or less of the home’s value. If you are renovating a home to prepare it for the market, then you should limit your investment to 20% or less of the home’s value. The saying, “kitchens and baths sell a home” still holds true when selling a home for profit, and brings a significant payoff at resale time. An important renovation tip to consider when you are doing home improvments for resale is to keep your renovation within the style of the home. For example, if you have an historic Spanish home, do not use a sleek modern kitchen. Not only will it not flow with the rest of the home, but will take away from the home’s value. The recently distributed some very helpful information which provides valuable insight as to where you should be spending your renovation money. These mid-range remodeling projects will offer the highest returns on your investment. Entry door replacement (steel) EstimatedCost: $1160 Resale Value: $1975 Return on Investment: 170.3% Wood deck addition Estimated Cost: $9265 Resale Value: $9981 Return on Investment: 107.7% Garage door replacement Estimated Cost: $1504 Resale Value: $2080 Return on Investment: 138.3% Minor kitchen remodel Estimated Cost: $17,898 Resale Value: $19,107 Return on Investment: 106.8% Window replacement (vinyl) Estimated Cost: $9690 Resale Value: $10,167 Return on Investment: 104.9% Attic bedroom Estimated Cost: $47,180 Resale Value: $39,549 Return on Investment: 83.8% Major kitchen remodel Estimated Cost: $53,694 Resale Value: $39,526 Return on Investment: 73.6% Bathroom remodel Estimated Cost: $15,243 Resale Value: $14,642 Return on Investment: $96.1%
