Spending tens of thousands of dollars on a home renovation
gets easier if you know it will boost the sale price of your home. The good
news is that renovations are returning more money than they have in a while —
an average of 60.6 percent nationally, according to Remodeling magazine's
"Cost vs. Value Report 2013." In other words, if you spend $10,000 on
a home renovation, the value of your home will go up, on average, by about
$6,060. Depending on the project and your location, you may see even more than
that. Here are some renovations that can be particularly rewarding for
homeowners.
Add space without adding on.
Adding a deck is one of the most lucrative home projects.
You're increasing usable square footage without the expense of expanding your
home's footprint. "There is a big trend all over the country toward
indoor/outdoor living," says Craig Webb, editor-in-chief of Remodeling
magazine. "People are building decks, cooking out and turning their
outside areas into extensions of their living rooms." The average outdoor
living space renovation costs $9,327. Average cost recouped: 77.3 percent.
The average home renovation returns 60.6 percent, according
to Remodeling magazine's “Cost vs. Value Report 2013.”
Reconfigure the space you have.
Another way to add living space and value: Remodel existing
areas such as your basement or attic. Adapting either space to your
specifications is one of the easiest ways to gain another bedroom or bath —
even a family room. "There is a desire, especially with the younger
generation of buyers, not to have to commute as far," Webb says.
"People are spending more time in their homes and that leads to more
renovations, reconfiguring a space rather than moving out. A house that is more
efficient in its footprint is rising in value." Another popular option is
using a renovated basement as an in-law suite, especially if it has a separate
entrance. You can recover up to 72.9 percent on the average attic-to-bedroom
conversion costing $47,919. While the average basement remodel that costs
$61,303 will return 70.3 percent.
Go ahead — redo the kitchen.
That real estate adage still stands: Kitchens sell houses.
And more specifically, a nice kitchen sells a house. "Expectations on
quality in the kitchen have risen markedly because everyone watches HGTV and
the home networks," Webb says. Today's trends lean toward lighter-colored
wood cabinets rather than maple or cherry ones and color blocking — when upper
and lower cabinets, or cabinets on two different walls, are two different
colors. The returns on a kitchen renovation can be substantial: For the average
minor ($18,527) kitchen remodel, you can recoup 75.4 percent of your costs, and
you can get about 68.9 percent back on a major ($53,931) kitchen remodel.
Don't forget your doors and windows.
These may seem like small improvements compared to
large-scale renovation projects, but they can make a big difference. A new
garage door, new windows and a new steel entry door will spruce up your house,
save energy and pay off when it's time to sell. A new garage door that costs
about $1,500 will get nearly 76 percent at resale. New windows, at roughly
$10,000 for the average replacement job, will return more than 71 percent of
the cost and a $1,100, well-insulated, steel entry door with a decorative panel
will return nearly 86 percent of the money you spend.
Remember, when you choose a renovation that will make you
love your home more now, you're likely to see the payoff later.
© 2013 Ameriprise Financial, Inc. All rights reserved. A2-4/13
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Thanks to Ryan Piwowarski, Branch Manager
An Ameriprise Platinum Financial Services® Practice for sharing this article
Need some financial advice regarding your next home renovation? Give Ryan a call and then call REcreateNW to complete your project.
