I found this interesting infographic and wanted to share it with you. It estimates the value that an average remodel adds to a home. I've generally analyzed home improvements based on how much of the money invested could be recouped if you were to sell the home tomorrow and this looks at it from a slightly different angle but still very useful for analysis.
Prioritizing and spending money first on basic home maintenance such as new; siding, roof, and windows will generally recoup your investment quicker than a major bathroom or kitchen remodel. A minor kitchen or bathroom remodel (under $15,000) however is still a pretty good return on your money at up around 90% ROI. When choosing what remodeling project to take on it is important to consider your neighborhood, you don't want to have the castle among the shacks. The value of your house should play a roll in the decision making process, a gourmet kitchen in an otherwise low end home, can actually detract from the rest of the house when it comes time to sell. The amenities your house has to offer compared to other comparable homes on the market is inevitably what is going to sell your home quickly or leave it on the market for months or years. For instance, if you have an older four bedroom one bathroom home don't remodel your one existing bathroom, your money is better spent adding an additional bathroom.
Last but not least, if you are remodeling a home that you plan on living in for a while remodel the home in a way that you and your family are going to get the most enjoyment out of. If the improvement is in a rental property consider how the remodel will improve rent-ability, curb appeal, and overall longevity of the home. Resale value does not have to be the top priority all the time but just realize that when it does come time to sell your house someone else may not appreciate/value the swimming pool or Italian tile as much as you have. What do you think the most valuable home improvements are?
Dulcey is a member of Rentec Direct who provides Property Management Software, tenant ach payment processing, Rentec credit, criminal, and eviction screening for property managers and landlords.
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