Remodeling 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:
- Garage door replacement
- Manufactured stone veneer
- Entry door replacement (steel)
- Deck addition (wood)
- Minor kitchen remodel
- Siding replacement
- Window replacement (vinyl)
- Universal design bathroom
- 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 loan can 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!