Angie’s List: When To Invest In Remodeling
PHILADELPHIA (CBS 3) ― Remodeling projects are expensive. They can also disrupt your personal life more than you might realize. So if you plan on making improvements to increase the value of you home, you want to be sure you know which ones will give you the most return on your investment.
In this week’s Angie’s List, Jim Donovan shows you which ones to consider, and some you might want to skip.
“When you are thinking about your project you need to think about how long you are going to live in your house and really what your family needs as well as what the neighbors have,” said Angie’s List founder, Angie Hicks.
Because overdoing it when it comes to upgrades, may not be worth it.
“A lot of times homeowners will want to add a bathroom when they have two already. If the neighbor’s houses already have two they may be investing in something that may not have a great return,” said Hicks.
In general, kitchen and bathrooms will get you the most for your money. But don’t forget the outside of your home.
“Siding on your house as well as windows can provide up to 80 percent return on your investment,” said Hicks.
And while swimming pools might be a fun addition, they don’t necessarily improve you’re home’s value unless everyone in your neighborhood has one.
“And then home offices, actually dedicating an office in your house that couldn’t also be used as a bedroom, a lot of times doesn’t get the best return,” said Hicks.
5 remodeling projects with the highest return on investment
The kitchen: Whether it’s a major overhaul or a simple makeover, putting a fresh face on your is your best investment. A major update could cost more than $20,000, but you can expect at least an 85 percent return.
The bath: An outdated bathroom can quickly spoil a sale, and it won’t be a pleasant space for you, either. Current trends of large showers instead of space-hogging garden tubs may serve you well, as will attention to classic features rather than unusual color schemes. A major update could cost less than $20,000, but yield an 84 percent return.
Decks: A new deck can cost a few thousand to tens of thousands of dollars, depending on size and materials used. Before you build, look at other homes in your area and build accordingly. If the deck is in good shape, your return could be more than 80 percent
Siding: If your home’s façade is siding and it’s not in good shape, replacing or repairing the siding can bring instant freshness. You’ll likely spend at least $10,000, but you should get at least 80 percent back.
Window replacement: The energy efficiency of new windows is a clear benefit to switching out older windows, but in some cases, it’s a safety feature, too. Costs depend on the number of windows you’re replacing, of course, and the type. Expect a return on your investment of at least 80 percent.
5 remodeling projects with the lowest return on investment
Pool: Unless your home is the only home on the block without a swimming pool, you’ll rarely get back even half of the money you pay to build one, and you can scare prospective buyers off because many don’t want the responsibility or liability of a pool. In-ground pools are expensive and can range from less than $20,000 to more than $60,000, depending on how expansive your design and materials.
Home office remodel: If you work at home, you’ll want a pleasant home office, but don’t get too carried away with it. Remodeling could set you back more than $20,000 and you’ll be lucky to get half that money back. It’s better to have a room that can clearly be used as a bedroom, playroom or other space without a lot of redecorating. Expect a return of 57 percent.
Sun room or four season room addition: These rooms can set you back more than $50,000 and they’re often beautiful bonus rooms. If you’ll enjoy the room and use it, it’s worth the investment. The return on investment is generally less than 60 percent, though.
Master suite: Who doesn’t want an expansive private retreat even within their own home? Master suites are expensive, though – some can run into six figures – and the return is generally in the 60 percent range.
The garage: Adding that third bay to your garage may make sense when your kids start driving, but it can be expensive – especially if it’s attached to your house. You may get as much as 60 percent of your investment back, but you may scare off buyers who don’t anticipate needing that much garage space