In addition to mourning the passing of the housing boom that peaked in 2005, many would-be house sellers are decrying the low returns their pricey renovations no longer promise on the sales block. If resale value is of any concern to you at all, though, you will want to carefully choose the types of remodels and updates that you plan.
Major Curb Appeal
Evidently, that first impression is more important to prospective buyers than almost anything else. Maybe it’s psychological, or maybe it’s about the image they want to portray to the world, but chances are, if your house doesn’t look good on the outside, buyers won’t even be looking inside. While timeless stone and brick exteriors are common requests, replacing existing exterior materials with fiber-cement siding has the highest cost-value ratio of any upscale project at 78%. What’s more, it has held that coveted spot for at least 6 years.
Other exterior projects with high returns include new garage doors, foam-backed vinyl siding and vinyl window replacement. Those replacements are perhaps even more about energy efficiency and low maintenance requirements than they are about appearances.
Added Living Space
Did you know that adding an attic bedroom or basement bedroom can actually be a better move than updating a kitchen or bathroom? (Of course, that depends on exactly how outdated your space is, but we’ll get to that part, later.) Increasing the livable space that’s already part of your home’s square footage is much more cost effective than building an addition; it’s always cheaper to build in than to build out. At the same time, these projects are still costly, with a US average price around $50,000 (with prices varying based on where you live and what kind of construction you desire). However, the nearly 72-83% returns make them worthwhile for the motivated seller.
Timeless Quality Replacements
The most outdated details of your home were probably once in vogue. Only you can decide whether you want your renovations to be more focused on making your home reflect current trends and your individual style preferences or geared toward resale potential. If your kitchen is tight, your home’s value could certainly benefit from a more open layout and an island—who doesn’t want a kitchen island?! In addition, you really can’t go wrong with quality, classic replacements. A huge aspect of knowing the market is realizing what your neighbors have done in their homes and what brands are local favorites. Your local contractor can tell you about such trends.
While the gap between the cost of home renovations and their resale value continues to widen, these investments aren’t completely pointless, when it’s time to sell your home. According to Real Estate broker Ron Phipps, updates do increase the chances of a sale in addition to decreasing the wait time before it does sell. Interestingly, many of today’s homebuyers use unimproved homes as comparisons when negotiating prices, but when they make an offer, it’s on the remodeled homes.
Remodeling Done Right
To begin your next home remodeling project in the Bethesda, Silver Spring or Gaithersburg, Maryland area, be sure to give D.R. Hartman Construction a call at 301-926-9000 or submit our online contact form.