Here are the six improvements that rank dead last nationally when it comes to getting those renovation dollars back at resale.
1. Home Office Renovation
With the innovation of Wireless Laptops, Smart Phones and touch-screen Tablets, home offices have become more mobile than stationary.
The standard home office renovation, meanwhile, costs an average of $28,000 and you can expect to recoup only about 45 percent at resale, according to the report.
Return on investment doesn't reflect your enjoyment of the space. If you still want/need to remodel that home office opt for something that can be easily converted back into a bedroom or den for the next buyer. Then, when you're selling, call it a study, den or hobby room which sounds more appealing than an office.
2. Backup Home Generator
You see a backup generator and imagine all of the comforts no matter what the weather. But potential buyers may not share that same vision.
On average, when homeowners have a heavy-duty backup power generator installed, they spend about $15,000. Going with a slightly less expensive model or having a less complicated installation could cut the costs significantly, especially since the average amount of the price recovered at resale time is only 48 percent.
3. Sun Room Addition
Real estate agents will tell you that potential buyers want square footage, pristine condition and lots of light. So a brand-new “Sun” room has to be great for resale value, right?
Not necessarily. While it seems simple enough to add, the national average for a sunroom addition is $75,000, while homeowners can expect to recoup only about 49 percent when they sell.
4. Upscale Master Bedroom
Who doesn't want to wake up in a luxurious suite with an attached spa bathroom? But once you see the price tag, it won't just be coffee keeping you up at night.
For a super-deluxe master suite addition, which adds square footage and uses only top-dollar materials, the average cost is about $230,000. In years past, this project was a trend in vacation homes that carried over to primary dwellings. On average Sellers can expect to recover about 52 percent at resale.
A buyer can purchase a newer house with the same features as part of the original floor plan. So while the next buyer may appreciate your luxury accommodations, which could even tip their decision in your home's favor, chances are they won't want to pay the full tab for your remodel.
5. Bathroom Addition
Unless you're a recluse who never entertains, you've probably wished for an extra bathroom now and then.
But bathroom additions require serious spending. For a moderately outfitted addition with synthetic stone or plastic laminate surfaces, the cost about $22,000, and if you upgrade, with finishes like premium marble or fine tile, and you can easily spend an average of $40,000.
Either way, you get about the same return, approx. 53 cents on the dollar. Unfortunately, in a buyer's mind, the additional bathroom isn't worth that additional $20,000 to $40,000.
Investigate a less-expensive way to get the same result without flushing quite as much cash. While additions usually cost more, pros might be able to reconfigure your existing space to add a bathroom for less.
6. Upscale Garage Addition
Do you dream about a garage that would have all the organizational built-ins, and a durable, easy-to-clean floor to ensure it would never be messy again, plus windows for natural light, and be able to store a couple of cars in there too?
The price tag for a top-of-the-line detached two-car garage with all the trimmings is about $90,000. You can expect to recover about 53 percent of that when you sell. Unfortunately, you've got a very small target audience out there that wants an upscale garage.
Just because you won’t recoup all of your investment at resale of your home, doesn’t mean you shouldn’t invest into the comfort and enjoyment of your home.
If you plan on living in your home for an extended period of time, then any improvements that enrich your living environment are worth it.
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