Homeowners everywhere want to know what home improvements will pay off with the best return on investment. Remodeling Magazine recently posted some information about the best remodeling projects to tackle and broke it down by region. Here’s some of the highlights to consider for homeowners in California, Oregon, Washington, Hawaii, and Alaska.
Homeowners will get a major bang for their buck on a minor kitchen remodel. The average minor kitchen remodel costs $23,000 and homeowners can expect to recoup about 95%. Why so much? Kitchens sell homes. Buyers want a home that will not require a ton of work and kitchens are expensive to remodel. This means that even a minor remodel can impress buyers who don’t want to take on a major remodel. As long as the kitchen is workable, buyers can always upgrade it down the road. Some homeowners might be wondering why an investment in a kitchen would not return $100+%. Think of a remodel like a car for sale on the lot. The minute you put it in, the cost of the materials and labor depreciates. The up side, in some cases the overall value of the home can increase by more than the amount invested in the remodel. Why? The perceived value home with a nicely redone kitchen may make the home more desirable than others in the neighborhood that do not have a remodeled kitchen.
How about a full blown kitchen remodel, which averages $64,000? It’s notable that a major kitchen remodel only returns 85%, which is still a good return, though not as high as a minor kitchen remodel. When you are remodeling a kitchen, it’s important to consider a few factors:
-Does the homeowner plan to sell soon or remain in the home for the long term? (For homeowners who plan to sell soon, it makes more sense to save the cost and trouble of a major remodel. If the homeowner plans to live in the house for more than 5 years and a nice kitchen is important to them, a major remodel probably makes more sense.)
-Is the homeowner ready to deal with a huge kitchen remodel? (Remember, any kitchen remodel is going to be inconvenient because people use their kitchen everyday. A major remodel may mean eating out for 3+ months.)
-The cost of labor. (Most homeowners will need to hire help and that will contribute to the bottom line. Get more than one estimate and use referrals from friends or real estate agents you can trust.)
-Materials/design. (Pick a style that suits the home and the neighborhood as well as the price point for the home. Marble counters may not work in a lower price point, just like linoleum floors are not a good choice for a multi-million dollar home. A real estate expert who knows what features are hot with buyers can help give good advice.
Here are a few other home remodels that can pay off:
Replacing vinyl windows – Cost $13,000. ROI 89%.
Deck addition – Cost $13,000. ROI 82%.
Bathroom remodel – Cost $19,000. ROI 77%.
Bathroom addition – Cost $47,000. ROI 68%.
Remember, this research is helpful in determining the home remodels that will yield a return on investment. However there is a right way and a wrong way to remodel. Every market is unique and it’s a great idea to check with a real estate expert who knows the specific market before banking on these results.
About Torelli Realty: Torelli Realty is proud to offer home improvement and home staging tips to help your home’s value throughout Costa Mesa and in Mesa Verde. The company has been servicing Costa Mesa, CA almost excludively for over 25 years and knows Costa Mesa real estate. We also have an expert on staff, Holly Schwartz, who came to us as a producer from Home and Garden Television (HGTV) and extensively studied home values and markets locally and nationally. Feel free to contact Torelli Realty for a consultation and for all your real estate needs.
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