BEYOND DESIGN
Design Build Professionals
703-628-5870
Maintenance is a “must” . . . Updating is an “investment”
It is often asked how does one decide where to invest remodeling dollars? It’s a
very good question. Read on … because savvy homeowners approach their answers
quite strategically.
Remodeling Projects with the HIGHEST return on investment:
1) KITCHEN - whether you are planning a major remodel or a simple makeover,
updating your kitchen is one of the best investments when spending money on your
home. A major update could cost more than $20,000, but the expected return for
those dollars spent is at least 85% not to mention the added marketing
benefits that will make your house sell faster for a higher price.
2) BATHROOMS – outdated bathrooms can quickly halt a possible sale. While living
in that space it can also inhibit your personal comfort in that space. Trends
are for large showers and spa-like details in lieu of bulky garden tubs and
unusual colors schemes. Bathrooms can often be updated for less than $20,000,
yet yield close to an 85% return. The appeal factor will be huge and your
interim comfort level immeasurable.
3) DECKS – a new deck can cost anywhere from a few thousand to tens of thousands
of dollars depending on size and style. Consider your competition. What kinds of
decks do homes near yours have? Make sure yours is at least comparable. If your
deck is at least comparable and in good condition then the return can yield
80-90% return on investment.
4) SIDING – if your house has “siding” then it should be in good condition
otherwise spending dollars to repair or replace it will add an instant look of
“newness” and heighten curb appeal. It will cost at least $10,000 but will yield
a minimum 80% return.
5) WINDOWS - the efficiency of new windows is a definite to marketing older
homes. Energy concerns as well as safety features will entice homebuyers more
times than not. Costs depend on the number and type of windows replaced but when
the investment is made the expected return is at least 80 percent.
Remodeling Projects with the LOWEST return on investment:
1) POOL - the return on pool and spa-type amenities is unusually poor. Unless your
house is the only one on the block without these then you can figure that the
return on investment will be less than half the cost of installation. In
addition these features can reduce the number of prospective buyers because of
the associated responsibility, liability and maintenance expenses. Pools and
spas are expensive luxuries and can cost from $30.000 to more than $100,000
depending on size and style. Returns will be minimal if not detrimental to
future marketing results.
2) HOME OFFICE - Tele-commuting has become more prevalent than ever. If you work
at home then you’ll want a nice office. Remodeling a home office can get very
expensive costing more than $20,000 in average cases. Be careful because returns
many times will be far less than half your investment. Marketing homes with
versatile rooms will serve the resale market better. Fancy home offices will
maybe yield a 50% return and competing homes with the space shown as a bedroom,
playroom or “whatever” other space not needing alteration or redecorating will
sell easier.
3) SUNROOM OR FOUR-SEASON ROOM ADDITION – often an eye-appealing addition, these
rooms can cost more than $50,000. The litmus test to build or not is the level
of enjoyment you will get from the room while you live in your house. The return
on investment is usually less than 60%.
4) MASTER SUITE - is a definite marketing feature to be considered however it
can quickly become over done. Master suites are expensive and can cost over
$100,000 – and the return won’t peak 60%. Make it a haven but not a money pit.
5) GARAGE – adding a 3rd bay to your garage is convenient for extra storage or
when your kids start driving. Garage additions are expensive, especially when
they are attached to the house. Similar to sunrooms the test is how much
enjoyment you will ultimately get with use while you live in the house because
the return on investment will likely not be near 60% and it may deter potential
buyers who don’t value such space.
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