I am often asked by homeowners what improvement projects provide the best return on investment. This is especially true when one is about to put their home on the market for sale. Since it is unlikely Ty Pennington will show up at your door with his design team and crew of 100 volunteers, you should be judicious in deciding what projects to undertake to attract buyers or simply improve the value of your home over the long term.
If you are going to be selling your home, I can make this real easy. Follow the TCP Principle – THROW stuff out (do you really want to pay too move all those items you won’t use in your next house either?); CLEAN as if your life depends on it (I’m not sure anything impresses buyers more than a spotless house); and PAINT (it is amazing the return you can get on the cost of a gallon of paint in what a buyer will pay you for your castle). And speaking of paint, for goodness sake be a little bolder than off-white, egg shell, or snow blizzard. There is neutral and then there is sterile and boring! Even surgical centers are adding color. Go to a paint store and ask what colors are popular, but not too trendy. Using colors with some depth provide a nice contrast between the walls and the trim and ceilings, and will result in photographs that will “pop” in the critical on-line marketing program used to promote your home. This will get more buyers to your house, and they will be impressed with the warmth you have created for them in their next home!
For larger projects, an excellent resource to discover what improvements score big with buyers is the National Association of Realtors’ annual Remodeling Cost vs. Value Report. This report, completed in conjunction with Remodeling magazine, compares construction costs with resale values for 35 midrange and upscale remodeling projects in 80 markets across the country, with data grouped in 9 US regions. Interestingly enough, 9 of the top 10 most cost-effective projects in terms of value recouped are exterior replacement projects. The number 1 project is a steel entry door replacement, with an estimated 102.1% of cost recouped on resale. It is the only project that is expected to return more than the cost. Other good ROI projects include garage door replacement (83.9%), fiber cement siding (80%), and deck addition (72.8%). Top interior projects for resale value include a minor Kitchen remodel (72.8%), an attic bedroom addition (72.2%), and a basement remodel (70%). If you plan to finish or remodel your basement, BE SURE to check with your local code enforcement officer in this regard! I know of at least one instance where a seller had to remove their finished basement to be issued the Use & Occupancy Certificate from their municipality when they sold their home!
To access full project descriptions and national and regional project data, visit www.costvsvalue.com. I would be happy to assist you in making decisions about the best improvements to undertake based on your circumstances. Remember – it all starts with the TCP Principle!
