UPGRADING YOUR INVESTMENT

darren-nolander-upgrading-your-investment-featuredRemodeling magazine just released its 31st annual Cost vs. Value Report, which compares costs for 20 of the most popular professional mid-range and upscale remodeling projects in 100 U.S. markets.  The report outlines how much real estate professionals believe the various types of investment will improve a home’s resale value.

The nine projects that should yield the most return in terms of a home’s resale value in 2018 include:

  1. Garage door replacement
  2. Manufactured stone veneer
  3. Entry door replacement (steel)
  4. Deck addition (wood)
  5. Minor kitchen remodel
  6. Siding replacement
  7. Window replacement (vinyl)
  8. Universal design bathroom
  9. Bathroom remodel

According to the experts, you’re likely to pay $3,470 to replace a garage door – which can be a steep cost to many homeowners, particularly if it’s unexpected. However, that improvement will yield, on average, $3,411 to the home’s resale value. This allows the homeowner to recoup 98.3 percent of all costs, not to mention the enjoyment they will garner from having a new, lovely, functional garage door!

The same goes for larger projects, such as a “minor” kitchen remodel, which will run you around $21,198 nowadays. As we know, a five-figure investment is nothing to sneeze at, but it’s significant to point out homeowners who follow through on this upgrade tend to recoup 81.1 percent of all costs, or $17,193.

Every home repair, contractor and housing market is different, but based on these averages, a multitude of renovations can be a sound investment in 2018. Keep this study handy, particularly amongst clients and prospects who had their sights set on upgrading to a new home, but decided to invest in their current love nest instead. As this study shows, a renovation loancan be a great bet on the future.

Be sure to read this study in its entirety. You’ll note that while a mid-range bathroom remodel can result in a $13,422 increase in a home’s resale value (allowing the homeowner to recoup 70.1 percent of the cost), an upscale bathroom remodel will cost $61,662 but only add $34,633 in resale value, a recoup of a mere 56.2 percent.

This is also a great time to re-evaluate your connections within the housing industry. A noteworthy referral to a licensed, reputable, reasonably priced contractor in your area could net you the business, trust and, yes, referrals that can take your game to the next level!

Regional Vice President - Southwest

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