Ever wonder which home improvement projects actually offer the best return on investment (ROI) for your home and your resale value? We recently ran across this cost vs. value report from Remodeling Magazine that we found interesting.
In her article explaining this report for realtor.com, Judy Dutton explains:
For this much-read report (which, by the way, is celebrating its 30th anniversary), researchers scrutinized 29 popular home improvements in 99 markets nationwide, polling contractors on how much they charge for these jobs as well as real estate agents on how much they think these features boost a home’s market price. From there, they divided each project’s upfront cost by the home’s resale value; the resulting percentage gives you a sense of how well each particular reno “investment” pays off.
In 2017, on average, you can expect to get back 64% on every dollar you invest into home improvements. Were you as surprised as we were at the 76.9% ROI on garage door replacement or the up-and-coming category of universal design (which ensures that a home’s features can be used by the elderly and disabled) at 68.4% ROI?!
It gets even more interesting as we look at the report for our region…take a look HERE.
Homeowners across North Texas are constantly asking us what improvements they can wisely make to increase their resale value. A valid question. But it’s a question that does not have a simple cookie-cutter response.
Our first question in response is, “How long do you plan on staying in your home?”
If your answer to that question is “more than 5 years,” then don’t worry about ROI. Because trends and fads in housing change every few years, spend your money on what makes you happy. On what you will enjoy.
Second, as with all things pertaining to real estate, it is important to understand that home improvement ROI value varies from area to area. In fact, here in North Texas, particularly in Collin County and Denton County, home improvement project ROI value can even vary neighborhood by neighborhood.
In North Texas neighborhoods, we see home improvement projects like remodeled kitchens & bathrooms, fresh paint colors, upgraded flooring and updated landscaping. These improvements attract homebuyers the most (and get the highest ROIs in our North Texas market).
If you’d like to see the cost vs. value report for the Dallas area specifically, let us know and we can forward you a copy. Hint: For upscale properties in the Dallas area, garage door replacement came back with the highest ROI at 86.6%.
Doing just a little research before delving into home improvement projects can make a sizable difference in your ROI. Let us be your resource. We know your North Texas neighborhood.
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