I loved reading the recent post below by Dave Ramsey regarding home improvements. If you are a current or past customer of mine, or you frequently read my blog, then you already know my passion for home improvements. However, I am most passionate about SMART home improvements…those that will get you a home that you LOVE, but also a return on your money if and when you decide to sell. It is also very important to not over-improve your home for your neighborhood. If you are interested in making a significant home improvement, please let me know if I can give you some information about current home values in your neighborhood. This will help you ensure that you are not over-improving your home. As always, please contact me if you have any questions!
Tara Moore, REALTOR
How Do Home Improvements Affect Your Home’s Value?www.daveramsey.com
Go Big or Go Home
Big home renovations are expensive, inconvenient and awesome when they’re done right. But how much of your costs can you expect to recoup on really big big-ticket home renovations?
Cost recouped: 65.4%
This is a case where a big chunk of the renovation’s payoff will come from your family’s enjoyment of the new space. This addition will cost you nearly $53,000 more than it will add in resale value. This project includes a two-story, 26-by-16-foot addition with a family room, bedroom and bathroom.
Master Suite Addition
Cost recouped: 63.2%
This seems like a lot for a 24-by-16-foot master suite with walk-in closet and full bath. It seems even more expensive when you consider it will only add $64,000 to the value of your home. Perhaps instead consider adding a bedroom in the attic. At a cost of just $47,919, you’ll recoup almost 73% of the costs.
Major Kitchen Remodel
Cost recouped: 68.9%You could easily spend a lot more than this on a kitchen remodel. The specs don’t include high-end features like granite countertops and deluxe appliances. If you want to go that route with custom cabinets, tile backsplash and commercial-grade range, you’re looking at a $107,406 project that will add just $64,113 in value.
Small but Mighty
Here are three home improvement projects under $10,000 that earn their keep.
The Most Important Thing to Remember
With any home improvement, but especially with big-ticket renovations, you must be careful about over-improving for your neighborhood. For example, if most homes in your area are 1,800–2,000 square feet and you add another 800 square feet to yours, you may not recover the costs of the addition when it’s time to sell.