Is This Your Situation: Want to Make Sure Your Remodeling Pays off When It’s Time to Sell?
Now that spring is here, many homeowners are looking to start a remodeling project. And homebuyers look at homes with eyes to remodel after purchase or review existing remodeled spaces and decide how much extra—if any—they’re worth. Others are deciding whether spending money to remodel is a good use of funds, or if it’s better to just save your money.
Remodeling magazine and the National Association of Realtors® completes a cost vs. value study each year. The latest report from 2020 can give you some insight as you review remodeling plans.
Something as simple as a front door replacement will recoup much of the expense, but not all. The study found the national average cost for a fiberglass entry door replacement to be $9,254 with an average resale value of $4,930 making that an 53.3% return. The report also found that a steel entry door replacement costs $1,881 nationally, with a resale value average of $1,294, showing a 68.8% return. So, if you need a new front door, go for it. Don’t expect buyers to repay you for every cent of the change though. Instead, enjoy the new addition and how it makes your home look nicer!
Other popular projects that provide a decent return include a bathroom remodel and major and minor kitchen remodels. Again, though, don’t expect a full return on cost. If your home needs updating, do it to enjoy the update before you have to sell your home.
A bathroom remodel costs on average nationally $21,377 with an average return of 64.0% or $13,688. Similarly, with an average return of 58.6%, a major kitchen remodel (new cabinets, appliances, countertops, paint room/trim, etc.) costs $68,490 and the resale value is $40,127. However, if you go for a minor kitchen remodel (re-facing kitchen cabinets being the main difference between a major and minor kitchen remodel), on average you’ll spend $23,452 according to the national average, but resale will return you $18,206 or 77.6%. So, if money and time are tight, you might consider a minor kitchen remodel for the best return when compared with a major kitchen remodel.
For more information about what remodeling projects will pay off when it's time to sell your home, give me a call today.