Often times when thinking about the best home improvement projects that will increase resale value, images of top of the line kitchens, spa-like bathrooms, and decked out home theatres come to mind. However, according to the 2013 Cost vs. Value Report published by REALTOR magazine, it’s actually the more practical and less exciting updates that will recoup the most of your investment. Let’s look at the best home improvement projects for your money.
The REALTOR report lists the top 10 cost-effective midrange and upscale home improvement projects that you can do to your home, and the results will surprise you. In the midrange category, the top rated home improvement project is an entry door replacement. With a job cost of $1137 and a resale value of $974 this will allow for 85.6% of the cost to be recouped. A wooden deck addition holds the #2 spot in this category with 77.3% of costs recouped, and a garage door replacement is in spot #3 with 75.7% of cost recouped.
In the upscale project top 10 list, siding replacement (79.3% cost recouped), garage door replacement (75.2% cost recouped), and window replacement (71.2% cost recouped) hold the highest rankings. In contrast, a major kitchen remodel costing $107,406 will only increase resale value by $64,113, or 59.7% of investment. Faring even worse is the bathroom remodel, where a $50,007 investment will yield only $29,162 at resale, or 58.3% of investment.
This report gives cautionary advice on taking on significant home improvement projects prior to listing your home for sale. Even the best home improvement projects in each category cost well above what could be recovered in the resale process. However, if you aren’t planning on moving anytime soon and want to make improvements to maximize the enjoyment of your home, then go for it! Just don’t count on getting your money back down the road. Thanks for reading.
Twitter: @FrugalFinance1
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of her employer or any other person or entity.
Please check us out on Alexa and feel free to provide feedback.
