Did you know that homeowners are expected to spend approximately $325 billion dollars on remodeling and repairs this year? It’s one of the biggest consumer markets, and it doesn’t look like fixer-uppers are going to slow down any time soon. Whether you’re remodeling to upgrade or add a new feature in your home, or you’re trying to get the most out of your income property, most want to make sure they get a return on the money they put into the work. The National Association of Realtors and the National Association of the Remodeling Industry recently released a “Remodeling Impact Report,” which examined the cost spent and the impact a project had on the home’s value. After looking over the data, the folks at CNBC came up with a list of tips and insights for homeowners looking to improve their property. Here’s a summary of some of their interesting findings.
The interior improvement project that packs the most punch is the kitchen remodel. According to the NAR/NARI report, a kitchen remodel has the greatest appeal to buyers and is most likely to add resale value. On average, upgrading a kitchen costs about $30,000, but homeowners are typically able to recoup about $20,000 when they sell.
The lowest-scoring interior remodeling project is the closet renovation. Only 1% of realtors said that a closet upgrade helped close the deal on a sale. While it doesn’t do much for seal the deal, those surveyed believe that you’ll recover half, or more, of the cost to upgrade, about $3,500 on average.
When it comes to improvements on the exterior of the property, the report claims that buyers appreciate structural improvements over aesthetic ones. The number one exterior renovation is considered a new roof, which may cost about $7,600 on average. According to participating industry experts, that new roof may help secure up to 105% in return. And it’s huge selling point. Win win!
On the other hand, the worst outdoor improvement project is upgrading the front door only. While it’s a relatively cheap improvement, it doesn’t go much for resale.
Home improvements can cost several thousand dollars, making it crucial that you spend wisely, and do the work right. For smaller jobs, it’s definitely ok to try to do it yourself, but for the larger-scale improvements, hiring a professional is usually the best option. But don’t be afraid to haggle. A recent Consumer Reports survey found that 96% of contractors said they would be willing to negotiate the price of a project if asked to.
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