Remodeling Cost vs. Value
Q. While remodeling your home can save you money, the real question is, does it translate into higher resale value?
A. All of the DIY (Do It Yourself) shows transform boring and outdated homes to modern, contemporary and appealing homes right before your eyes. The one thing you must keep in mind is that just because you think your remodeling looks good and should add value doesn’t mean it will.
The good news is, for the second year in a row the Cost vs Value survey data by Hanley Woods shows the cost-value ratio is up to 66.1%. This means that if you spent $1,000 on home upgrades on average you would recoup about $661 in resale value. The top five gainers along the front-range and mountain communities in Colorado for 2014 are:
- Attic Bedroom Remodel- 95%
- Two Story Addition- 89.3%
- Family Room Addition- 87.6%
- Deck Addition- 85.1%
- Minor Kitchen Remodel- 83.5%
While three of the five biggest gainers can be very costly, starting with a few affordable DIY-friendly home improvement projects can pay off and make buyers take notice:
Improve landscaping. When it comes to curb appeal, your landscaping can pack a powerful punch, for better or worse. While many people focus their improvement dollars indoors, don’t overlook that first impression that strikes a buyer before they even get out of the car. And you don’t need a green thumb to reap rewards. Simply maintaining a freshly mowed lawn, removing dead plants and branches and adding colorful annual flowers or shrubbery can add 7 to 15% to your home’s value, according to the National Association of REALTORS®.
Upgrade lighting. While you may have tolerated your dated dining room chandelier, buyers may not be so forgiving. Switching out light fixtures for more updated styles is a low-cost, low-commitment home upgrade. Under-cabinet lighting is another quick-fix. Many home improvement stores now offer easy to install plug-in lights that deliver the look of a high-end custom kitchen, and don’t require electrical work. If you do update lighting that requires wiring, make sure you work with a licensed professional to ensure they’re safely installed.
For updated yearly analysis, please click here.