Tuesday, December 12, 2006

Which Home Improvements Bring the Most Bang for your Buck when Selling?

We all want to know which home improvement projects are worth putting the money into, whether you're planning on selling your home soon, or further down the road. A kitchen remodel is a HUGE project and can alter the entire feeling of your house, but will it be worth it's own value when you're ready to sell?
In the December issue of Realtor magazine, a list of the current return on home improvement projects is listed for each city, so that you know what holds value in the Phoenix area. Here's a list of a few of the most common projects, their estimated cost and how much of that cost is retained when selling your house.

Bathroom Remodel: $11,673 job cost. This project can up the price of your home by $12,670, which is a 108.5% return! This might be the best value for your remodel money!
Sunroom Addition: $47,184 job cost. Resale value is $31,374 which is a 66.5% return. I guess we all have enough sun here that adding a sunroom isn't necessarily the best project to put your money into!
Minor Kitchen Remodel: $17,487 job cost. This project can up the resale price of your home by $15,164 which is a 86.7% return. Not bad consider all the benefits of a new kitchen!
Window Replacement: $9,862 job cost. Resale value $8,369 which amounts to a 84.9% return.
However, remember that replacing old single-pane windows with double-paned windows can also reduce your electric costs as well as outside noise, which can be two more benefits not considered in the return percentage. (This is my big plan for my house this year!)
One of the lowest returns is on Home Office remodels with a return of 60.9% of your cost. Leave the home office as it is (or do a simple re-paint, re-flooring) and focus your energy on your bathrooms!