When deciding where to put your investment dollars into your home, there are a few industry guidelines to consider:
- Keep the value of your property between 15 to 20 percent of the homes in your area;
- In remodeling, keep colors and schemes neutral. Bold colors may appeal to you, but not necessarily to a prospective buyer.
- Consider local trends in decorating.
- Doing the work yourself may save money in the short run, but poor craftsmanship won't help sell your home.
- Use quality materials as much as possible.
Some remodeling categories have been reviewed by Remodeling Ideas® magazine, to help give homeowners an idea of the percentage return on their investment for these types of projects. Some of the major categories represented are as follows:
- Addition of new bath: 75 to 100%
- Bathroom Remodeling: 60 to 80%
- Minor Kitchen Remodeling: 60 to 80%
- Major Kitchen Remodeling: 45 to 70%
- New Room: 79 to 90%
- Master Suite: 60 to 80%
- Deck: 65 to 75%
- Skylight: 0 to 30%***
- Windows and Doors: 25 to 45%
- Energy Efficient Fireplace: 75 to 100%
- New Heating System: 20 to 45%
Please note that local market conditions will influence the actual resale value of your remodeling. The projects outlined above were evaluated as improvements to a 1,800 square foot ranch style home in a desirable neighborhood. Investment returns for your area may differ.
*** Some Realtors® feel that for different areas, Lake Tahoe, for instance, skylights yield a higher rate of return than that shown above.
(Source: 1997-1998 Cost vs.Value Report, Remodeling Magazine © Hanley-Wood, Inc.)