Is it Worth the Cost ?

A stressful part of putting your home on the market today is trying to figure out what to upgrade to get the very best price. After all, just because you put money into a renovation project doesn't mean you will recoup the money in a sale.

In many cases, smaller-scale renovation projects recoup more of their initial cost than larger, pricier ones, according to the report. For example, a minor kitchen upgrade of under $20,000 returns 72.8% of renovation costs, but a more expensive kitchen remodel retains less of its value on resale.

You may also want to consult Remodeling Magazine’s Annual Cost vs. Value Report for a breakdown of typical returns on renovation projects large and small. Cost vs Value Chart

Surprisingly, the report noted that exterior upgrades recoup more of their costs than interior renovations -- a trend that’s been building for the past five years. What’s the hottest exterior upgrade since these reports tracked performance, replacing the front door with a steel entry door, which typically returns 100% of its cost.

The report also lists garage doors as a wise investment; returning more of their original cost than other prudent outdoor renovations include siding and window replacement.

Interior improvements retaining the most value include attic renovations and basement remodels, recouping greater than 70% of their costs.

“Just like an addition to the home, an unfinished space—such as the attic or basement—will instantly add value and livability to your home, as it increases the square footage and changes the way your family lives in it”. “You will be transforming a space that likely gets very little use into a fully functional area for your family to enjoy.”

The report also notes that non-essential features have less resale value. Sunroom additions and home office remodels are not the best use of your investment funds.

Of course, homeowners’ needs and budgets dictate their choice of home-improvement projects. Still, it helps to know projects’ cost vs. return ratio when making the final decisions.

If you would like a professional’s opinion specific to your house give me a call and we can set up an appointment to review your personal situation.

Tel: 631 298 6131

Email: egiordano@elliman.com

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