Are you considering a home remodel? Then you may want to postpone any large-scale projects for now. Simple, small-scale upgrades will have the biggest payback this year, according to the 2015 Remodeling Cost vs. Value Report produced by Remodeling Magazine.
In this “less is more” year, projects like a minor kitchen upgrade will return more of a homeowner’s investment than a full-scale remodel when it comes time to sell. In fact, the minor kitchen upgrade was the only remodeling project that broke into the top 10 with a national average payback of 79.3 percent.
Upgrades that make an impression
REALTOR® Magazine, the official magazine of the National Association of REALTORS®, recommends replacing items that will create the most favorable impression with a potential buyer. Among these are a new front door, windows and siding.
Improved lighting is another item to consider. Aside from location, good lighting is "the one thing that every buyer cites that they want in a home," says HGTV.com.
Cutting the bushes that block a window or installing a Solatube Daylighting System are two ways to bring in more sunshine. This makes a home brighter and more cheerful and, ultimately, more sellable.
Where will the biggest returns be?
Generally speaking, the biggest returns will be realized for specific projects in the Pacific region. Six projects in the states of Alaska, California, Hawaii, Oregon and Washington are expected to recoup 100% of the investment costs.
Nationwide, the top 5 projects in terms of homeowner return on investment include:
- Entry door replacement - 101.8% ROI
- Manufactured stone veneer - 92.2% ROI
- Garage door replacement - 88.5% ROI
- Siding replacement, fiber cement - 84.3% ROI
- Garage door replacement, upscale - 82.5% ROI
REALTOR Magazine advises that the actual amount homeowners can expect to recover when they sell their home depends on a number of factors, such as:
- Type of home improvement
- Typical upgrades for neighborhood
- Quality of the work
- Importance of the improvement to a particular buyer
While it's wise to assess the return for work done on your home, it's not the only consideration. If the home improvement you have your heart set on is one that will provide you with a few years of enjoyment as well as a reasonable payback, then it may be worthwhile to proceed with it despite the trends. After all, trends change and perhaps this year’s deferral will be next year’s recommendation.
What home improvement projects are you tackling in 2015?