Home Remodel Cost and What the ROI Is On a National Average
One of the most common questions I get as a Realtor is “Should we put any money in the house before we list it?” The short answer to that is yes and no. It really all boils down to your own personal situation. If something major is not working properly, especial something like the roof, you really should fix it. Ask any realtor how many buyers they have had that have dismissed a house almost immediately because of a leaky roof. The first 5 remodels are on mid market level homes.
- Attic Insulation (Fiberglass)(107.7% ROI)
Attic insulation is a small investment that means a lot. Especially in older mountain homes like we have here in the Denver Foothills.
- Replace Entry Door (Steel)(91% ROI)
- Manufactured Stone Veneer(89% ROI)
- Minor Kitchen Remodel(80% ROI)
Don’t put too much into a kitchen remodel. The ROI goes down the more you put in.
- Replace Garage Door (77% ROI)
The following are the best ROI on high end Luxury Homes:
- Replace Garage Door (85% ROI)
- Replace Entry Door (Fiberglass)(78% ROI)
- Replace Window (Vinyl)(74% ROI)
- Window Replacement (Wood)(73% ROI)
- Grand Entrance (Fiberglass)(70% ROI)
Keep in mind these are just national averages and your specific property will be a bit different. The moral of this post is to check with your Realtor to see what (if anything) you should fix. Here in the mountains we have a few things to add to the list to help you get a nice ROI on your investment.
A few things to keep in mind don’t make that suit “your taste” because you may do something that only you like (or a small group of people). For example cat murals on the living room ceiling may not be the best bet (I used that because i’m a dog guy). If you do something like that you will actually lose money on your remodel because many buyers will actually subtract the cost from their offer that it will take to cover up the cats and paint dogs on the ceiling.
Also keep in mind if you don’t actually get the entire return from your remodel, it’s OK. Sometimes fixing things up will help the buyer choose between your home and the neighbors home or a similar home they are also interested in. Sometimes you just want to make your home more “marketable” than actually raising the sale price. I understand with this inventory you don’t need to worry about marketability because MOST stuff is selling fast. That won’t always be the case though.