4/12/2013 - Ten remodeling projects that elicit big returns
When it comes to renovating a home, certain remodeling projects bring more bang for the average person's buck than others, according to a recent report produced by the National Association of Realtors.
Recently, one of the country's largest trade associations released its Cost vs. Value Report, which details some of the most popular housing updates being made and the type of return on investment the residents may see.
In terms of the project that brings the greatest resale value for the cost paid out, the best refurbishing efforts involves replacing the home's primary entrance with a steel door. On average, the job costs approximately $1,140 but the return on investment after the home has been sold is 86%.
Another job that is worth the money spent is the addition of a deck. At an average cost of $9,300, the expense of the project is considerable but homeowners can expect to receive an ROI of more than 77%.
Gary Thomas, NAR president, indicated that modernizing a home is one of the best ways sellers can draw in more potential buyers. "Curb appeal projects offer great bang for your buck, because a home's exterior is the first thing potential buyers see," said Thomas.
Other projects with significant returns on investment include garage door replacement, minor kitchen remodels, wood window replacements and adding a bedroom to the attic. In all of these cases, the ROI was north of 72%. Siding replacements, vinyl window replacements, basement remodeling projects and full-scale kitchen remodeling rounded out the top 10.
While updating a property can make a home more aesthetically pleasing and efficient, these projects aren't always done for reselling purposes but rather for the homeowners' peace of mind and desire to beautify their homes. Prior to completion, it's wise for policyholders to get in touch with their homeowners insurance provider, to ensure their renovations are sufficiently protected, and to check whether their rates should be adjusted based on what's installed.