How much will remodeling raise my home's value?

By
Real Estate Agent with Gayle Harvey Real Estate, Inc.

In this highly competitive buyers market sellers are looking for ways to improve their chances of selling their home.  Faced with the reality of having to perhaps either take a lower price for their home or have it languish on the market, sellers are looking for ways to ensure that theirs is the home that sells.  One of the routes that they take is making an improvement or taking on a remodeling project.

One of the first facts that many home owners do not realize is that most remoldeling projects do not bring a 100% return on the investment.  In reality a project with an 80% return is considered a good improvement.  Of course you should not lose sight of the fact that many improvements will make the home more appealing to buyers with the result of a faster sale, but not necessarily for a proportionately higher price.

Recently "REALTOR Magazine" and "Remodling Magazine" gave their top projects that gave the biggest return for the investment.

!. Replacing exterior siding with upscale siding such as "hardiplank" rated an 88.1% cost return.

2. Adding a wooden deck - 85.4% return.

3. A minor kitchen remodel with new cabinet fronts, new appliances such as stainless steel, floors (in our area ceramic tile is popular) and countertops (granite is currently popular)- 83% return.

4. Replacing windows (wooden windows) - 81.2% return.  Replacing with high quality vinyl windows brings an 81% return.

5. A midrange bathroom remodeling - 78.3%.  More upscale bath remodeling projects did not bring as high a return.

The biggest factor to consider before beginning a remodeling project is whether it is something that you will enjoy if you decide to remain in the home.

 

Pam Dent, e-PRO, SRES
Real Estate III
Charlottesville, Virginia
www.JumpintoGreenerPastures.com
www.Charlottesville.virginiablogpage.com

 

 

 

 

 

 

 

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Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

This is great....I saw something like this years ago in a Buffini mailer.  very valuable info.

May 23, 2008 04:39 PM #1
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Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse

Thanks Larry - Its amazing how many people think that a remodeling project is going to add 100% to the value of their home.

May 24, 2008 03:44 PM #2
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Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

I wouldn't even push the remodeling costs that high myself but that is just me.

May 25, 2008 09:18 AM #3
Rainmaker
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Daniel J. Brudnok, REALTOR
Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA
SRES, e-PRO,ABR,GREEN,CSP

Pam,

This is very useful...as I am always asked about this when a "potential" weight's in on selling or remodeling....or a new Buyer to know where they will get their best bang for the buck.

May 25, 2008 10:16 AM #4
Rainer
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Jacki & Jerry Shafer
The Shafer Real Estate Team, Keller Williams Louisville East - Crestwood, KY
The Shafer Team, Call 502-643-SOLD

Great information to share with clients.  The fact that it will make the property more appealing and will beat out the competition who choose NOT to update is the key.  It WILL most definitely help sell the property - and that's the goal, right?

May 25, 2008 11:22 AM #5
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Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse

Gene - You may be right.  Also remodeling costs will vary locally.

Dan - I am always finding that clients are under the impression that anything they do to the home will add full value.

Jacki and Jerry - you are absolutely right.  The hard part can be in getting sellers to realize that they cannot always price the home proportunately higher as well.

May 28, 2008 11:38 PM #6
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Pam Dent

REALTOR® - Charlottesville Virginia Homes / Horse
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