Home Improvement ROI

By
Real Estate Broker/Owner with ILM Realty

I'm not sure who's seen it, but there is a good report out there from Remodeling Magazine which shows the 2007 average ROI on projects. I'm curious, with all of the changes in the market and home prices this year, how is anyone going to calculate something like this?

Nationwide, a wood deck offered the best ROI in 2007, while a home office remodel was deamed the lowest. For 2007, none of the projects they listed had an ROI over 100%. That coincides with the concept that a home is not an investment - it's a place to live. Investment real estate is a whole different game.

People do not build a deck for a return on investment, but many sure do factor the return into the equation. If I spent $10,000 building a deck which offers an 85% ROI, it really only cost me $1,500. When I look at it that way, it sure is worth it to put the deck on the house!

I have a summary of the 2007 survey available on my website, as well as a link to further information.

http://www.ilmct.com/home-improvement-roi.asp

Comments (2)

Jane Page Thompson
Aiken Properties - Aiken, SC

Thanks for the info!

Sep 01, 2008 02:44 PM
Adam Waldman
Westcott Group Real Estate Company - Hauppauge, NY
Realtor - Long Island

STACEY - Sometimes, it makes sense to do some improvements so that the home shows better and attracts more buyers.  However, I would caution people that do improvements to understand that there are no guarantees, and that they should use very neutral colors if they are going to do anything.  I've seen some cases where people put their touches on the home, and it does nothing to help the sale.

Sep 01, 2008 10:55 PM