Many homeowners wonder what renovations are going to bring the most return when they sell the home? To phrase it differently “What are the highest value home improvements?”
Thankfully the Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com) provides a list of the remodeling projects that bring the highest return on investment once a home is sold. While the costs and returns varied from region to region across the nation, the report details what the San Francisco Bay Area can expect.
5 Highest Value Home Improvements
The five remodeling projects that provide the most value upon sale for the San Francisco Bay Area are detailed below:
1. Wood Deck. The project that is most likely to provide the greatest recovery of its cost is the addition of a wood deck. Not all Homes lend themselves to the addition of the wood deck but that is the item that would the greatest cost recovery at 176% of cost.
2. Entry Door. The second home improvement project most likely to recoup it’s cost is replacement of the entry door with a steel entry door. The Cost vs. Value Report estimates this cost to be about $1,300 and recoups an estimated $2,400 in resale value. Nationally this is the home improvement that is most likely to recover the cost no matter where you are.
3. Minor Kitchen Remodel. The third most valuable repair to do is a minor kitchen remodel this is a much pricier item. With the cost roughly estimated $24,000, but recouping an estimated $35,000 in resale value. The report indicates installing new fronts on the cabinets with raised panels, providing a new cooktop, installing a new oven, installing new counter tops with a new sink, repainting and the installation of new flooring.
4. Garage Door Replacement. After a minor kitchen remodel, the Cost vs.Value Report estimates that the project with the next highest likelihood of recouping its value is a garage door replacement. This is a relatively inexpensive project costing roughly about $1,800 and returning almost $2,600 in value upon sale, a 144% return on cost.
5. Bathroom Remodel. Rounding out the top five projects that will recoup their cost of installation is a bathroom remodel. Again this is a high price item. The report expects that this remodel will include replacing all the fixtures putting in a new sink new tile surround and ceramic tile flooring to update the bathroom, but returns 136.5% of the cost of the project.
Both the entry door replacement and the replacement of the garage door are smaller cost items, but can have a big effect on a home’s “curb appeal” and value. Curb appeal means the appearance of your home as a buyer steps out from the car and onto the curb. Small things to freshen up a home can make a lasting first impression and make the online photos really shine.
Projects for Living vs. Projects for Selling
The Report only detailed the items that were most likely to regain their cost via sale. The Cost vs. Value Report is useful if you are considering a sale of your home in the near future.
Other projects may be more valuable to individual owners that are planning on living in the home long-term. If you are going to be staying in the house for a while consider the projects that are going to be most useful for you as a resident and not those that will provide value at some unknown date. Get the maximum use from your home and don’t focus on it as an investment.
The Remodeling 2014 Cost vs. Value Report © 2014 Hanley Wood, LLC. Complete data from the Remodeling 2014 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.