When it comes to home improvements, smaller replacement projects, particularly those that enhance curb appeal, remain the most cost effective way for sellers to improve value.
Sellers are always looking for ways to get top dollar for their listing. In an article published by REALTOR® Mag, the official magazine of the National Association of REALTORS® (USA), which discussed The Remodelling Cost vs Value Report, large-scale jobs aren’t likely to return sellers their full cost.
According to the article, simpler, lower-cost projects tend to return greater value. Replacing a front door could recoup as much as 101.8% in resale value. First impressions are important for prospective buyers. Replacements offering greatest payback are ones most obvious to buyers when they first view homes online, such as a new garage door, new siding, or manufactured stone veneer. (Think about the impact of beautiful online photos when buyers view listings on MLS®.) Inside, kitchens offer the most remodelling bang for your buck, and are the only interior remodelling job to make the top 10.
The amount sellers can expect to recoup from home improvements is dependent on many factors and will vary from sale to sale. Keep home improvements inline with what is in good taste for the region and neighbourhood, and ensure the improvements are done well, in a quality workmanship-like manner.
While you can’t apply this data directly to any specific house or neighbourhood, you can use the Cost vs. Value Report as a starting point to determine what home improvements are right for you and how they can potentially improve the market position of your property.
Below is a chart put out by the National Association of the Remodelling Industry. Check it out to get a quick visual on the relationships between project cost, return at resale, and the joy that owners experience after a remodel.
You may also want to check out the 2016 Cost vs Value Report