When it comes time to spruce up your home, granite counter tops and soaker tubs may be on your wish list, but the sad truth is, much of the pretty stuff doesn’t provide the best return. Instead, value often comes in on an as-needed basis. For example, a leaking roof stops buyers in their tracks, so they’ll never see the slate-tiled shower and Chinese teak hardwood in your kitchen.
It’s likely you’ll spend more on your project than what you add to your home value, experts say. The key to a high return is knowing where the value stays longest and taking the most economical path to payback. Remodeling Magazine helps you make these tough home improvement decisions with their 2016 Cost vs. Value Report. It assesses the value of 30 home improvement projects in terms of their impact on sales prices.
With energy costs on everyone’s minds, smart remodels bring the most rewards. The best value, according to the report, is insulating your attic with fiberglass, which will recoup you 116.9 percent of the cost of the project. Investments in energy-efficient appliances, updated heating and air conditioning units and whole-house green makeovers are payoffs year-round.
Surprisingly, additions don’t capture the returns you’d like. Even on one of the report’s top five projects, like a minor kitchen remodel, you’re only adding 83.1 percent value. It may be a better payoff to upgrade less appealing staples like siding, windows and doors, because keeping your home’s bones and foundation healthy is a must-have in any location. A two-layer, 30-year-old roof may be a deal breaker for a buyer, considering the average roof replacement cost is $20,142.
Don’t let the walls of your home contain you when it comes to improvements. Curb appeal proves to charm buyers just as much as indoor improvements, and you’ll reap the rewards by enjoying your home more. This explains why siding is highly ranked on the remodel list, with a 77 percent return on investment.
Whatever decisions you make, consider what’s right for you based on what the market needs. Putting in a state-of-the-art chef’s kitchen when you’re a movie buff might add value for a future buyer, but you’re the one living there now. It’s better to consider that home theater you’ve been dreaming of if it’s more your style.
So when your dream is adding that amazing deck and pool, Busey will help guide you through the process to ensure your dream becomes a reality. Consider using the equity (the difference between the amount you owe on your home and what your home is worth) from your home to pay for the project. Apply for a Home Equity Line of Credit in minutes on busey.com or call us today at 1.800.67Busey to learn more.
Most Value Added:
1) Attic insulation (fiberglass): 116.9 percent
2) Manufactured stone veneer: 92.9 percent
3) Garage door replacement: 91.5 percent
4) Entry door replacement (steel): 91.1 percent
5) Minor kitchen remodel 83.1 percent
Least Value Added:
1) Bathroom addition: 56.2 percent
2) Backup power generator: 59.4 percent
3) Master suite addition: 64.1 percent
4) Deck addition (composite) 64.4 percent
5) Major kitchen remodel: 64.9 percent