The Best and Worst Home Improvements for Selling Your Home in West Michigan

The Best and Worst Home Improvements for Selling Your Home in West MichiganConsidering a home improvement project to increase the value of your home is a wise idea, as long as you are smart about doing it. The goal is to recoup some of that investment when you sell. Some home improvement projects are smart returns on your investment (ROI), others not so much.

I did some research and here are the average values (cost recouped when home sells) specifically for West Michigan homeowners.

 

Top 5 Worst Mid-Range Renovations for ROI:

1)   Pools-cost is significant, between $20,000-$60,000 and don’t do much to add value to a home, in fact, they can negatively impact a home’s value as there is maintenance and insurance costs involved.

2)   Home Offices-surprisingly, adding a home office is more expensive (average $20,000) and typically you only get half the value back when you sell. The reason for this is a new home office may make sense for you, but does not appeal to everyone.

3)   Sunrooms-only 43% cost recouped. Again, the same concept as a home office, it will only appeal to a select amount of people.

4)   Master Suite Upgrade-expect to lose 40% of your return on investment.

5)   Garage Additions-50% cost recouped. Not everyone needs the extra space.

 

Top 8 Best Mid-Range Renovations for ROI:

1)   Installing a Front Door-steel  at 82% and fiberglass at 63% cost recouped

2)   Vinyl Siding Replacement-75% cost recouped

3)   Minor Kitchen Remodel-when you keep it within 20% of your home’s value, returns an 72% cost recouped

4)   Garage Door Replacement-71% cost recouped

5)   Deck Addition-wood at 69% and composite at 63% of cost recouped

6)   Roofing Replacement-66% cost recouped

7)   Window Replacement-wood at 68% and vinyl at 66% cost recouped

8)   2 Story Addition-61% of cost recouped

Interestingly enough, many of these better ROI mid-range renovations involve exterior projects: front door, vinyl siding, garage door, roofing, window replacement. According to Walter Molony, a spokesman from the National Association of Realtors, “Many buyers judge a house by its exterior.” Clearly  these numbers reflect that.

Another benefit of renovating now, is many highly skilled and qualified contractors are available related to homeowners with tighter budgets, and holding off on remodeling.  So contractors are bidding out jobs very competitively and taking on smaller mid-range projects which you may be able to get a discount on. Get quotes from several and be open to some flexible offers and terms.

Lastly, renovations also can offer tax payoffs especially when the improvement increases the home’s energy efficiency.  Certain windows, doors, insulation, roofs, solar panel or heaters and geothermal heat pumps may offer tax incentives. Not to mention the energy savings that these will offer your family and the cost conscious new homeowner who may buy your home.

A home improvement has many benefits, most importantly it will help your home stand out from the crowd and possibly get it sold quicker, just make sure you are making a wise informed investment prior to implementing the changes and make sure the renovation will appeal to the broadest range of buyers.

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~Kent Brumm

The Best and Worst Home Improvements for Selling Your Home in West Michigan

Realtor at Keller Williams

 

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