If, like me, you’re a fan of HGTV’s “Fixer Upper,” you remember that each episode ends with a calculation: How much money the new owners spent on their house and remodel, and how much the Gaines couple thinks that home would sell for if the owners listed it now.
Homeowners often consider big remodeling projects when they’re getting ready to sell — upgrading kitchens and bathrooms, painting or replacing siding, to name a few. But those renovations can be very expensive. Do they really increase the price of a home?
HomeAdvisor, a home renovation research company and website, says yes, renovations can up the value of a home — but rarely by more than the owner spent on the remodel.
According to HomeAdvisor research: A few little fixes, like replacing a garage door or steel entry door, can pay off almost in full when it’s time to sell the house. Bigger projects, like kitchen remodels and deck additions, cost more, and the payoffs vary — though, of course, it’s impossible to put a dollar value on the memories made during family barbecues.
See the end of this story for more on the methodology.
The 10 home improvement projects most likely to increase home values without breaking the bank:
Fiberglass attic insulation. Installing fiberglass insulation is an easy, relatively cheap way to reduce heat and air conditioning lost through the attic, which can help homeowners save on electric bills. On average, HomeAdvisor estimates that installing fiberglass insulation costs $1,340, and its resale value is even higher — around $1,450.
Steel entry doors. Swapping out your wooden front door for a steel one can save energy and increase security. Again, HomeAdvisor estimates this fix costs about $1,410, and owners can recoup more than 90 percent of the cost in a resale.
Manufactured stone veneer. Adding stone detail to the exterior of your home can differentiate it from your neighbors’ houses while preserving a classical look. Installation costs around $7,850, HomeAdvisor estimates, and resale value is around $7,020.
Kitchen remodel. If you’ve considered selling your home, you’ve probably considered updating the kitchen. These projects can be very expensive — HomeAdvisor says the average cost in 2017 is $20,830 — but they can raise resale value by about $16,700.
Replacing garage doors. Another practical fix. Costing just $1,750 on average, new garage doors are worth an estimated $1,345 when it’s time to sell.
Replacing siding. Vinyl siding can be good for decades, but weather, especially hail, eventually wear on it. According to HomeAdvisor, an average investment of $14,520 can add about $11,090 to a home’s resale value.
Addition of a wooden deck. Building an outdoor space for barbecues and game nights costs an average of $10,710, but it can raise a home’s resale value by $7,652, according to HomeAdvisor.
Addition of a second story. This is a big expense — $176,110 on average, which could purchase a home in many parts of the U.S. But HomeAdvisor estimates it can raise the resale value of a house by 71 percent, or $125,220.
Basement remodel. Instead of building additions, many homeowners look to their basements for extra living space. HomeAdvisor says basement remodels cost $71,120 on average, but can increase a home’s resale value by $49,770.
Addition of a family room or den. Need some additional indoor gathering space? HomeAdvisor says it costs $89,570 on average to add an extra room to a house, but the project can up a home’s resale value by $62,060.
Original Source: http://www.desertsun.com/story/money/real-estate/2017/09/12/which-renovations-could-increase-your-homes-value-most-theyre-easier-than-you-think/654178001/
Original Date: September 11 2017