Recouping Your Remodel Investment
If you've been dreaming about updating your kitchen, flooring or adding a new deck to enjoy the warmer weather on, it will help to know what kind of return on investment your remodel could get you. Remodeling Magazine has released it's annual Cost vs. Value report to help you learn what you can expect to pay, and expect to recoup, on several different upgrade investments when it comes time to sell. Keep reading to learn more about recouping your remodel investment when you sell, and click this link to read the full article.
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.There wasn't a lot of change between the 2017 report and its 2016 predecessor, with most projects retaining their value.But what is noteworthy is that the value of pricier projects rose significantly over last year, says Craig Webb, editor of Remodeling. He believes this indicates that the housing market is healthier and more bullish than ever."When the market is hot, Realtors® are more likely to give value to more expensive renovation projects, because they expect that the market will stay hot and people will pay the price," he explains. "When the market is cool, Realtors tend to put less value on those big-dollar projects, because they have concerns about whether the house will get sold in any state."Still, the perennial chart toppers for ROI are the cheapest to pull off. This year (as last), the No.1 finisher was installing loose-fill fiberglass insulation in the attic. Not exactly sexy, but boy, is it cost-effective! In fact, this is the only project that regularly pays back more than you invest, with an average 107.7% ROI.