Every month a slew of real estate-related publications are postal mailed or emailed to me. I confess that most get tossed in the "read someday" pile or saved in my "read soon" computer file.
I'm going to try to change my ways though, because there's lots of valuable information contained in these publications. Most is just plain common sense that needs to be reinforced.
Some is derived from studies paid for by organizations within the real estate industry. Take for example Remodeling Magazine's annual "
Cost vs Value Report." This was done in cooperation with REALTOR magazine.
It would be great if sellers could get back -- dollar-for-dollar -- what they invest in remodeling and renovations. But often times they don't. The 2007 Cost vs. Value Report says that the
highest returns, nationally, were for:
- Siding replacement
- Deck addition
- Window replacement
- Kitchen remodel (minor)
Notice how in 2007 there was a trend toward renovation projects that improve the exterior of the home?
Also in this study, on a national level, those improvments that returned the
lowest retuns:
- Home office remodels
- Installing a back-up power generator
- Sunroom addition
Keep in mind that this is just one survey conducted during one point in time. And it averages data from across the country. Real estate "conventional wisdom" says that sellers will almost always get the most bang for their buck from
kitchen and
bathroom upgrades.
However, the amount recouped on a remodel also depends on
where you live (region of the country ... city ... neighborhood) and
the other houses that your house is competing against. If your house is the only one in the neighborhood without a nice deck, or new kitchen cabinets, or a three car garage, it would be wise to consider those renovations first.
Lastly, it's important to keep costs in line so that you don't end up over-improving your home. Buyers tend to discount a house that's priced too far above the value of other homes in the neighborhood.
The bottom line: When deciding which home improvements to tackle, remember that trends come and go, but quality and good taste are universally desireable.
