Wondering if you should make renovations to your home? Curious as to which renovations deliver the highest returns? Thinking about selling and want to know which renovations to consider making prior to listing your home for sale?
Read on to experience the latest research and findings that will give you a perspective on costs, value, and return for home renovations. After exploring these sources & their insights, talk to a real estate professional to see if making renovations to stay in your home, or renovations to sell makes the most sense for you. Keep in mind, staying in place renovations are not necessarily the same as renovations to sell.
Renovate or Move: Our Flowchart Will Help You Decide
Here is a great article on the pros and cons of renovating or moving. Check it out. The thought process presented is well worth your time and attention.
Bankrate.com & Remodeling Magazine
Here is a Bankrate.com article that references the 2021 Cost vs. Value Report from Remodeling magazine that examined 150 markets in the U.S. and compared the average cost of 22 remodeling projects to see which retain their value at resale. It identifies the six home remodeling projects that deliver the highest returns.
“According to the 2021 Cost vs. Value Report (www.costvsvalue.com) referenced in the Bankrate.com article, the top six remodel projects in Dallas with cost recouped are Garage Door Replacement - 95%, Manufactured Stone Veneer - 92%, Minor Kitchen Remodel (Midrange) - 68.6%, Entry Door Replacement (Steel) - 68%, Siding Replacement (Fiber- Cement) - 64.5%, and Deck Addition (Wood) - 61.1%." See the 2021 Cost vs. Value Report https://www.remodeling.hw.net/cost-vs-value/2021/west-south-central/dallas-tx/ for a complete view of the 22 projects covered in the report.
The National Association of REALTORS
According to NAR’s 2019 Remodeling Impact Report, “Homeowners and renters remodel, redesign, and restructure their home for a variety of reasons. Americans spend $400 billion annually on remodeling their homes. However, many find the idea of taking on a remodeling project too overwhelming to attempt. Thirty-five percent of U.S. homeowners would rather move to another home than remodel their current home. Fifty-five percent of owners in suburban areas and 52 percent of owners in urban areas say they would be willing to remodel their home. This jumps to 70 percent for owners in rural areas. Thirty-six percent of the homeowners did the project themselves. 35 percent hired a professional for all of the job, and 14 percent hired the labor but purchased the materials. Twelve percent contributed some do-it-yourself (DIY) labor.”
The charts below reflect the REALTOR rank of projects appeal to Buyers and REALTOR rank of projects likely value to the home for resale:
Fixr.com
Fixr.com provides a visual representation of the cost vs value of home improvements in 2020 in their blog.
According to Fixr.com the most expensive home improvement projects in 2020 include:
According to Fixr.com, the lowest cost home improvement projects in 2020 include:
According to Fixr.com, “The previous visualization showed the cost vs. value related to 22 popular home improvement projects in 2020. This graphic combines that data with historical trends for similar projects, which shows the biggest increases and decreases in ROI for the most common home improvement projects since 2017.”
https://www.fixr.com/blog/2020/03/02/visualizing-cost-vs-value-of-home-improvement-projects-in-2020/
Homelight.com
Should You Renovate Your House Before Selling It?
Homelight.com in this article breaks down all the factors that help you weigh what you can afford, which types of projects have the best bang for your buck, and when you are better off lowering the price of your home versus making big changes.
Bottom Line
Your home is your castle! Regardless of your short-term and long-term plans, staying or moving, renovations can be beneficial. When considering renovations or selling or both, consult an experienced real estate professional and mortgage lender as they can help you weigh all the factors so that you can decide what is best for you and your family.
If you decide you want to explore your options, we would be honored to assist you. No obligation! It is our passion to help homeowners and prospective homeowners realize their home ownership dreams!
