A home is one of the biggest, if not THE biggest investment a person will make in their life. Things change, our needs and families change, ideas of what we want change, so this means our home will change. The California Association of Realtors recently came out with this chart of the top ten remodeling projects that increase the value of your home.
These are good rough estimates for return on improvements to a home……… even though they may not bring 100% back on investment, they do contribute to the pride of ownership, personal use enjoyment, and may help sell your house over another home because of the improvements.
Remodeling in Lake Tahoe
Different regions realize more return on their investment than do others. The west, in particular, California, have a higher return on their remodeling projects even though the costs are higher. The west’s 71.3% return on investment (ROI) is far ahead of the regions that are on the bottom of the list (the Dakotas, Nebraska, Kansas, Minnesota, Iowa, and Missouri) which sees an average of 49.5% return.
I’ve had a lot of clients looking for “fixer-uppers,” homes that the owners (or banks) sold before investing in remodeling. They can expect to spend an average of 25% of the cost of a remodel in labor costs. So, if someone can do all the work themselves they’ll be saving quite a bit. But, if the owner isn’t able to do the work, the cost will be worth in the end.
Should sellers remodel before selling?
Sellers should put some effort into making the home look it’s best before putting it on the market in order to get the best offers. You have 5 seconds to present your house in a first impression. The walkways and entry are what a prospective buyer will see first and the easiest to fix up. According to a recent CNN Money story, home staging and not home remodeling is what is suggested if you are selling (unless a repair is needed). Home staging is the process of renovating your house to increase its value and sell faster. Home staging professionals say it should cost 1-3% of the asking price to prepare your home for selling.
Top 5 things to improve in your home before selling:
- Declutter and paint kitchens
- Downsize and rearrange living room
- Downsize and rearrange bedroom
- New hardwood floors
- Redo master bath
Involve your real estate agent
Your real estate agent knows the market and what your home is worth. I’ll work with you to get you the biggest return on your investment. Call me for a free consultation.