If you are thinking of doing a major renovation to your home you should know what changes will recoup most or your investment down the road. Updating your kitchen, bathroom, a room addition, painting, new landscaping; which of these and others will bring back most of your investment when you re-sell your home and why.
Homeownership is an investment. We need to know how to get the most out of our investment by wise planning. It is a good idea to maintain your investment by making improvements. Some improvements will bring back a higher percentage of investment when you sell your house. Other improvements will bring back very little of
Contractors use the sales pitch all of the time: “You will recoup all of your cost when you sell your home.” Many contractors say that if you replace all your single pane windows for new energy-efficient dual pane windows you will get back the entire $7,000.00 you paid for them. This doesn’t necessarily mean it’s true. You have to take into consideration the housing market in your area.
If your home is already at the top level of sales prices, you must ask yourself if it is possible to push that price of $7,000.00 dollars higher to pay for the windows. In many cases, it doesn’t make sense to spend a lot of money on your home because you may have to overprice it to sell it. Overpriced homes in neighborhoods of tract homes usually have a difficult time selling. The seller has to constantly justify the price by explaining the upgrades. Look at your neighborhood and make sure you plan your remodeling in accordance with what you see.
You should only consider making a major renovation on your home if it is something you would do even if you were not going to get a penny of the cost back. A swimming pool will usually fit into this category. Rarely do you recoup the cost of a swimming pool in money, but the pleasure you get from it can be worth the cost. Adding on a room addition is also a home improvement that you will use every day and will bring back more than monetary value. A room addition, though, can usually recoup quite a bit of your investment.
Studies and surveys have been done to find out what improvement will bring back the largest percentage of your investment. Remodeling an out of date kitchen has consistently topped the list for a couple of decades. It can bring back 95% of your initial investment upon selling your home. Kitchen remodeling, though, is one of the most expensive home improvements you can do. Landscaping, or putting in a grass lawn, is one of the cheapest home improvements you can do and it will bring back 85% of your investment.
Following is a list of home improvements and the approximate percentage of investment you may get back upon selling the home.