Home remodeling is hotter than ever. According to researchers at Harvard University, remodeling investment is up 6% over last year and now makes up a $324 billion market.
That’s a giant amount—more than a quarter of the total real estate spending in the entire country.
But out of all the possible remodeling projects out there, which ones actually pay off the most? According to a survey of remodelers and real estate professionals, there are five remodeling projects that offer the best returns:
1. Your kitchen. Kitchen remodeling can be as simple or as elaborate as you like. However, to maximize your return you should keep your investment to under 20% of the value of your home—as is recommended by surveyed real estate professionals. The outcome? A whopping 85% return on your investment.
2. Your bathroom. A thorough bath remodeling project can cost up to $20,000. However, it’s definitely worth it. Not only will it pay for itself, but it should give you an added 80% return.
(If you already live in Arizona and are selling your home, you don’t need to worry so much about the next two items, but if you’re selling in other parts of the country before moving here, they’re definitely something you should consider.)
3. Your deck. Replacing your deck can cost you anywhere from a few thousand dollars to tens of thousands of dollars, depending on the size. The expected benefit will be similar to a bathroom remodeling project—around an 80% return for a fresh, new deck.
4. Your siding.Fading or worn-out siding can turn off potential buyers before they even step foot in your home. Replacing old siding will make it much easier to sell your home, and in addition, it should give you an 80% return on an investment of around $10,000.
5. Your windows. New windows can mean greater energy efficiency, increased thermal and acoustic comfort, and a more modern look. Homebuyers are well aware of this, and they are willing to pay accordingly. That’s why a typical window replacement should yield at least a 70% return on your investment.
These are the top remodeling projects in terms of ROI. Clearly, some of them will make more sense for your home than others. However, if you’re considering selling your home, then just one of these projects could add tens of thousands of dollars to the price you’ll be able to get.
Lastly, I want to tell you about a new program we offer our clients called the Max Value Program. If you’ve been contemplating selling your home but don’t have the time or money needed to make these repairs or updates, this might be perfect for you. By signing up, we’ll come to your house and do the repairs and updates we think it needs to make it as valuable as it can be in your area. This will allow you to get much more for your home than the needed repairs.
If have any questions or want any additional advice about which home remodeling projects are right for you or you’re interested in the Max Value Program, don’t hesitate to give us a call. We’d love to help you.