May 19, 2008

Home Renovations: What Project Is Actually Worth the Expense?

23260599 Home Renovations: What Project Is Actually Worth the Expense?

People will remodel their homes for various reasons. Off the top of my head, I can think of a few. These include:

1. Upgrading to have that kitchen you’ve always wanted.

2. Adding to accommodate a growing family.

3. Updating a home prior to sale.

I know I’ve thought about how much work I wanted to do on my house right before I put it on the market. (Not much.) My home got painted, soundproofed (since it’s near LAX), a few new fixtures, new flowers, and a thorough cleaning.

I did think about seeing if HGTV’s “Designed To Sell” would be interested in doing a remodel on my home. (The producer was willing to take a look at the house to see if it would work for the show. But a commitment of 3-4 weeks of filming and not being able to show my home during that time made me think twice about that idea.)

Weighing in on adding value versus dishing out cash, I was curious to see how much return on investment you get on some common renovations. So I checked out CNNMoney.com’s page, “Will this renovation project pay off?“. They let you look up what common projects cost on average and how much of that you can expect to get back in terms of the value of your home.

Some of the top ROI categories included the following:

Upscale Siding Replacement/Average Cost: $13,149/% Cost Recovered: 88.00%/Value At Sale: $11,573

Minor Kitchen Remodel/Average Cost: $17,928/% Cost Recovered: 85.20%/Value At Sale: $15,278

Vinyl Window Replacement/Average Cost: $13,120/% Cost Recovered: 84.70%/Value At Sale: $11,109

Bathroom Remodel/Average Cost: $12,918/% Cost Recovered: 84.90%/Value At Sale: $10,970

Some projects that showed the least value included a home office remodel (63.4% cost recovered) and a sunroom addition (66.30% cost recovered).

Does anyone have any remodel stories they want to share? What did or didn’t you do before you sold your home?


  • Thanks for the response, Lisa!

  • Lisa

    Yes, "green" was the in trend. Corian counters were also big. They have a new translucent line that is kinda cool (featured on their website)...makes me feel like I'm at custom hotel or something lol.

  • I'm curious. What types of materials were you seeing in at the kitchen/bath show, Lisa? Was there any abundance of "green" materials?

  • Lisa

    When I do decide to buy, I would rather get a place that has not been recently remodeled so I can customize it to what I want. I'll be looking at the bones of the house and how well it was cared for.

    My big pet peeve is how overdone granite and travertine have become. There were so many flip houses around here in the last few years and they all seem to have the same upgrade materials. Granite may actually be a liability here in LA where everyone wants the latest trends and granite is starting to be considered dated (the 2008 kitchen/bath show had approximately 15 model kitchens and only one had granite).

    I have read that in a declining market, making expensive upgrades just for increasing the selling price doesn't usually pay off.

  • Yes. I've heard about being able to do the stainless steel cover. : )

    I think the professional photography is a definite must. I did all my own photos. Although I don't technically consider myself a "pro", I do take photos as part of what I do as a freelancer, so I felt quite comfortable with that.

  • Zach

    I hear you. Then maybe 'design on a dime' would be what you need, haha. I saw some tricks on there where you can buy a sheet of stainless steel and cover your old dishwasher for the same look. Beyond that there IS always staging.

    Ive also wondered a lot recently about having home professionally photographed, which could be up to $300, but considering the amount of buyers who shop on the net, it could draw in more buyers to take a look.

  • Thanks, Zach.

    The move-in ready look is the vibe I'm getting for what most people are looking for. But I guess besides the pricing, I wonder about the appearance of the home because this market is so fierce for sellers right now. The homes that I have seen sell aren't just move-in ready, they look beyond immaculate - new kitchen finishes, stainless steel appliances, staged furniture, etc.

  • Zach

    Funny some of the shows on HGTV, like Hidden Potential or even House Hunters, where they show the owners what could be, or the realtor is trailing behind "that can be changed", etc.

    They gave a blurb on screen the other day that only 15% of people remodel within 2 years of buying.

    This being said, my opinion is that a place that is 'move-in ready' will sell and sell for more and faster. But thats where it should end if you are planning to sell. You dont necessarily need stainless steel or whirlpool baths but it needs to be something where the buyer doesnt have to immediately be tearing up and remodeling, just to not be embarrased when their relatives show up.

  • Mgmtmom and Timothy. Thanks for your comments.

    Some great article links, by the way.

    Anyone else? I'd love to hear more opinions. Keep them coming...

  • If you are looking to sell immediately then don't remodel. Many times the buyer will remodel the kitchen and bath themselves so it will be money wasted. If you are thinking long term sale then kitchens are definitely the place to put your money.

    Here are a few more options.
    http://www.charlesandhudson.co...

  • mgmtmom

    People often make dramatic changes to their homes while preparing to sell and then comment, "Gee, it looks so good, may we should stay." In today's market, with reduced ROI, maybe they should.

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