Remodeling projects offer range of payoff
When it comes to remodeling, there are many projects that bring a higher value or return on investment (ROI) at the time a house is sold.
However, there are other remodeling projects that may make it easier to sell a home, even though the ROI may not be as high.
Prior to beginning a remodeling project, it is important to know the goal, such as for resale value or for personal comfort, or if the homeowners plan to stay in the house for a few years before selling.
This is because most trends and updates are good for about five years, when new trends or products start making their way through the market.
CURB APPEAL
For those considering selling their home, the largest ROI comes from curb appeal, such as fresh coat of paint on the exterior, siding, refinished or new front door, and updated and/or refreshed landscaping. Curb appeal is where first impressions are made and can set the tone of the home for possible buyers before they step inside. KITCHEN, MASTER
Interior projects that generate the most ROI are kitchens and the master suite.
“For example, an updated kitchen often brings an 85 percent ROI,” said Shawn Vacek, president and owner of Remodelers of Houston.
However, updates to appliances, flooring and countertops are enough to appeal to buyers, and do not break the bank.
“The bath in the master suite is one of the major areas for ROIs. Therefore, a new tub, shower and vanity, which are considered cosmetic, can attract buyers and please sellers with the added value,” Vacek said.
FLOORING FACTOR
Flooring is also a key factor, as older carpet can turn away buyers. Hardwood floors — with their sleek lines and many finishes to choose from — are one of the items buyers have on their list.
MORE ROOM
Adding more space, such as a guest room/apartment over the garage or finishing out the attic, is relatively inexpensive and brings a high ROI.
“Increasing the square footage of a home is always beneficial, and an area where homeowners get a lot of bang for their dollar,” Vacek said.
OFFICING AT HOME
Home offices are a growing trend in today’s more flexible workplace, since so many people are working from home for the full work week or several days a week. They need a quiet sanctuary in the home with all the technological bells and whistles where they can stay motivated and get work done. The ROI is high, with different percentages depending on the area.
GREAT OUTDOORS
Outdoor living, a hot commodity in the market but usually not offering a high ROI, often helps a home sell. For example, a covered patio for entertaining, pool, and outdoor kitchens are popular.
CLOSET APPEAL
Empty nesters who are going to stay in their homes for a while are sacrificing a bedroom to turn it into a large closet. A luxury, oversized closet is attractive to buyers, but again the ROI is not as high as for some other upgrades.