A common question that I get from potential home sellers, in some form or another, is should I remodel in order to sell my home and if so what do I need to do? Of course every house and every market varies, but the National Association of Realtors put together a Remodeling Impact Report for 2015 and it offers some interesting insights. I’ve outlined the top five projects with the highest return on investment.
Regarding this data, here’s how it was compiled. Projected costs of the projects were compiled through the responses to a survey that was sent to the members of the National Association of Remodeling Industry (NARI) members. The assumption for costs was based on an average home size of 2450 square feet in good condition. The remodeling was assumed to be standard quality not particularly high or low end.
A new roof offers the highest return on investment of all projects. The estimated cost is $7600.00 and the percentage of value recovered from the project is 105%. One thing to note, in my experience roofing in Los Angeles tends to be more expensive. I find most roofing projects tend to be in the range of $10,000 – $15,000.
Hardwood Floor Refinish
The main purpose of this type of project is to upgrade worn out surfaces and improve the overall aesthetic of the home. I do believe that beautiful hardwood floors make an overall impact that’s hard to top. NARI cost estimate is $2500 and percentage of value recovered is 100%.
New Wood Flooring
If there are no hardwood floors to re-finish it can still be very worthwhile to install them. The NARI cost estimate is $5500 and the percentage of value recovered is 91%.
New Vinyl Windows
New vinyl windows will boost a home’s energy efficiency significantly, decrease exterior noise profoundly and improve overall functionality. I find that new windows impart a sense of ease and relief to would-be homebuyers. It’s an upgrade everyone feels good about. NARI cost estimate is $15,000 and percentage of value recovered is 80%
Kitchen Upgrade to Complete Kitchen Renovation
The kitchen is the heart and soul of a home and creates one of the biggest impacts on would-be buyers. Of course there’s a wide variety of what can be done. The estimate below covers a modest upgrade such as cabinet re-surfacing and new solid-surface countertops to completely gutting a kitchen and installing everything brand new. The NARI cost estimate runs from $30,000 – $60,000 and the percentage of value recovered across the board is 67%.
Again, these results were based on a national poll. If you’d like more specific information tailored to our specific Los Angeles market and micro-markets don’t hesitate to reach out. I’d be happy to share my insights and even recommend some great homes that you can check out.
For more information on ideas to get your home ready to sell, call Greg Peterson at 970-331-1333.