When you are considering doing some renovations with the idea that the new look will increase the value of your home, there are some choices that are better than others. Some of the best return on investment reno's might even surprise you.
During a recent study by JLC Group’s Remodeling Magazine, they established some costs versus value trends in 2019. What has the biggest bang for the buck? Replacing your garage door.
That’s right if your garage door looks terrible, go ahead and replace it. You will recoup an estimated 97.5% of the cost. The next best value for the cost is changing the façade of your home. If you have grungy old vinyl siding and replace it with something updated and fabulous, you will recoup an estimated 94.9% of the cost.
It is really the outside of the house that gets the economic go ahead. A deck addition, siding and new entry door all come in around 75% of cost recovery. The only indoor A+ return is a new kitchen. This is not surprising as so much of our time is spent inside and around this home hub. At an 80.5% cost recovery, go ahead and fix your kitchen, just remember to not go overboard.
You heard me, overboard. Upscale renovations just don’t get the required payback. The worst pay-off is an upscale master suite, bathroom or kitchen renovation. Midrange reno's had a much better return on investment. I know you personally might want a second kitchen inside the kitchen, 2 ovens, a baker centre and 3 sinks, but at the end of the day, don’t expect to get your money back out when you go to sell.
Your home is your castle and not all renovations are going to increase the value of your house but they may be worth it to you. That’s okay as this is where you live, where you create amazing memories and where you provide a haven for family and friends.
If, on the other hand, you are doing the renovations in preparation to sell your home, reach out to me first and we can discuss whether the change is going to be worth the time, effort and cost. Sometimes it is and sometimes it just isn’t.