Translate this page
Return On Investment for Home Improvement Projects
Friday, July 4th, 2014
Issue 27, Volume 18.
Mini-projects like adding decorative tile to a kitchen backsplash or to a bathroom, refinishing the doors on kitchen cabinets, adding new hardware to cabinet doors, replacing bathroom fixtures, replacing old light fixtures and painting are relatively inexpensive but can make an immediate visual impact.
Replacing carpeting, flooring and window coverings are a little more expensive but can also make a huge difference in first impressions. Finishing a garage with drywall and paint, adding lighting, even epoxy-coating the floor can add to the value of the home.
If selling the home is the goal, first consider making all needed upgrades or repairs to the major indoor systems (wiring, plumbing, heating and air conditioning). Buyers want this assurance and inspectors will be looking at these. Then consider functional aesthetics and outdoor curb appeal.
Replacement projects actually add more value than remodeling projects. Replacing the front door, garage door, siding and windows averages 72 percent return on investment (ROI), according to a National Association of Realtors report.
ROI increases when projects add more living space, or make the property more efficient or less costly to own or operate.
According to the 2010-11 Remodeling Magazine nationwide Cost vs Value report, these updates bring the best return based on their cost and the value they bring to the home.
• New front door: 102.1 percent
• New garage door: 83.9 percent
• Fiber-Cement Siding: 80 percent (vinyl siding returns 72.4 percent)
• Wood Deck: 72.8 percent
• Minor Kitchen Remodel: 72.8 percent
• Window Replacement: 67.5 (wood) to 72.6 (vinyl) percent
• Remodel for Extra Bedroom (unused space, e.g. attic): 72.2 percent
• Basement Remodel: 70 percent
• Major Kitchen Renovation: 59.7 (luxury upgrades) to 68.7 percent
• Two-story addition: 65 percent
This was a nationwide report and remodeling attics, basements and second-story additions are not typical for Southern California homes. Kitchens are typically the heart of a home and improvements there are add value.
The National Association of Home Builders did note that in 2011, the addition of a half-bath added 10.5 percent to a homeís value; a full bath, up to 20 percent.
A clean, well-maintained front yard with color, a strategically-located shade tree, and solar lights can add up to 10 percent.
Some improvements add to perceived value -- alarm systems, water filtration systems, upgraded dishwashers, built-in wine refrigerators, spa tubs may peak the interest of luxury buyers.
The big caveat here is not to go overboard! The values of surrounding homes will play a part in determining the value of your home; you donít want to make improvements that will price your home significantly higher than any thing else in the neighborhood and make it more difficult to sell.
You donít want to put $100,000 of improvements into a $300,000 home that is in a $300,000 neighborhood. Unless you live in a neighborhood of custom or semi-custom homes, try to keep your upgrades within the values of the neighborhood.
Make improvements that you can enjoy. That value is priceless.
The Valley News has tightened its' policy regarding comments.
While we invite you to contribute your opinions and thoughts, we request that you refrain from using vulgar or obscene words and post only comments that directly pertain to the specific topic of the story or article.
Comments that are derogatory in nature have a high likelihood for editing or non-approval if they carry the possibility of being libelous.
The comment system is not intended as a forum for individuals or groups to air personal grievances against other individuals or groups.
Please, no advertising or trolling.
In posting a comment for consideration, users understand that their posts may be edited as necessary to meet system parameters, or the post may not be approved at all. By submitting a comment, you agree to all the rules and guidelines described here.
Most comments are approved or disregarded within one business day.
The Village NewsAnza Valley OutlookFallbrook.orgSourcebookPDF VersionCoupon CornerSign up for iNewsEarthquake Info
357 Medical marijuan...
267 Arrests now numb...
175 Authorities seek...
168 Man hit, killed ...
125 Mother-in-law ar...
122 Camp Pendleton a...
122 Bikers steering ...
121 Authorities dist...
118 22 suspected ill...
117 Double fatality ...
114 Murrieta Mayor A...
114 Temecula mosque ...
110 Governor Brown s...
107 Bonsall man (lon...
105 U.S. Marine corp...