Musings from a life of chances and changes
Thanks to Remodeling Magazine it's time for 2019 home return on investment statistics. Keep in mind that costs to remodel have increased, but the percentages still show a positive return on a variety of projects. Where will you gain the most significant ROI? Exterior updates reign supreme. Just look at the ROI for a new garage door and see that you'll get almost 100% of your investment back when you sell your home. Obviously, homebuyers who are not impressed by the outside of your home will be less interested in buying before they walk through the front door. First impressions are key to selling. Here for your inspiration are remodeling projects and the statistics to see whether you can recoup your expenses.
2019 NATIONAL AVERAGES
National Cost vs. Value Averages
M = MIDRANGE PROJECT | U = UPSCALE PROJECT
PROJECT JOB COST RESALE VALUE COST RECOUPED
Minor Kitchen Remodel - M $22,507 $18,123 80.5%
Major Kitchen Remodel - M $66,196 $41,133 62.1%
Major Kitchen Remodel - U $131,510 $78,524 59.7%
Bathroom Addition - M $47,40 $28,726 60.6%
Bathroom Addition - U $87,700 $51,000 58.1%
Bathroom Remodel - M $20,420 $13,717 67.2%
Bathroom Remodel - U $64,74 $38,952 60.2%
Universal Design Bathroom - M $33,374 $20,868 62.5%
Deck Addition (Composite) - M $19,150 $13,232 69.1%
Deck Addition (Wood) - M $13,333 $10,083 75.6%
Midrange Backyard Patio- M $56,906 $31,430 55.2%
Manufactured Stone Veneer-M $8,907 $8,449 94.9%
Master Suite Addition - M $130,98 $77,785 59.4%
Upscale Master Suite Addition -U $271,470 $136,820 50.4%
Siding Replacement - M $16,036 $12,119 75.6%
Grand Entrance (Fiberglass)-U $8,994 $6,469 71.9%
Window Replacement (Wood) - U $20,526 $14,530 70.8%
Window Replacement (Vinyl) - U $16,802 $12,332 73.4%
Entry Door Replacement (Steel)-M $1,826 $1,368 74.9%
Garage Door Replacement- U $3,611 $3,520 97.5%
Roofing Replacement (Asphalt)-M $22,636 $15,427 68.2%
Roofing Replacement (Metal) - M $38,600 $23,526 60.9%
When you're ready to sell your home, please get a Realtor's objective opinion. You may be overwhelmed and think that your house won't sell unless you tackle certain projects. You may think you can't afford to correct the flaws you see in your home. A Realtor knows what buyers expect depending on numerous factors, including your listing price. A Realtor can help stage your home to make the most of its best features. Acknowledge your need for expert advice. With the guidance of a professional, the burden of making the most of your home's curb appeal will be lifted.
"We shape our buildings; thereafter they shape us.” - Winston Churchill
Recently, a friend handed a magazine to me. It was a beautiful edition of Luxe Interiors + Design Chicago. "I thought you might enjoy this because I know you really like interior design. You could probably look at it and teach me a lot." I assured my friend that flattery works every time, but that I am far from an interior designer. Of course, after a cocktail or two, I could be coerced into a prediction of the next design trends from a BergerBroker point of view.
I recognize my obsession with decorating, and I use it as a Realtor. It gives me insight when evaluating a home's marketability. Clearly, we "shape" our homes with our own style and vision. Not surprisingly, I often look at design from my ability to sell a home for the highest price. Thinking about decorating elements that are most important to sell is critical. It's a bit like winning a popularity contest. If you remember the playground skirmishes from your elementary school days, the real estate argument would go something like this: "My backyard is bigger than your backyard." "My kitchen doesn't look like it belongs in the Brady Bunch." On and on and back and forth it goes. Suffice it to say that each house has its strengths and weaknesses, much like people. So the question is what can you do to your home to make buyers see it as the most popular?
1. Accept what you cannot change. It is a waste of time to bemoan the issues about your house that cannot be changed. For instance, the location of your home. If it is next to a highway, railroad tracks, or just a busy street, get over it for now. Learn from the experience and put location as a bigger priority the next time. The price of your home will reflect the location and if the home is attractive, it will sell.
2. Leave your ego at the door. Let your Realtor come into your home and give you an honest assessment of what needs to change to make it more appealing to buyers. Years ago, I painted my master bedroom with one of my kids. It was a great bonding experience, and we were proud of our artistic talents. At the time, layered paint with rags or sponges was trendy, but trends end, and I knew that a fresh coat of neutral paint was the answer. Your favorite DIY project can detract from your home, and if you take things personally, you risk losing potential sales.
3. Correct obvious flaws. Does your house need a facelift in order to have that “cool factor”? Look around with a critical view. Better yet, the realtors that you interview should be able to give you valuable advice. Do you have faucets that drip or are outdated? Have you ever professionally cleaned your wood burning fireplace? Do all the electrical outlets work? What is the condition of your windows? These are the type of items that will be part of your home inspection. Quick fixes to minor imperfections will impress buyers and show that your house has been lovingly taken care of instead of neglected. If you want your home to be even more popular, change some light fixtures and/or hardware. These can be inexpensive and will help your home be “in style,” thus improving its popularity ranking.
4. Resist the urge to splurge. It may be tempting, but the way to be most popular is not to have the most glitz and glamor on the street. Having the largest home on the block may make it more difficult to sell. Bells and whistles, like a pool and spa in the backyard, are likely to be a detriment too. The updates to your home need to be reasonable. A moderate bathroom update will give you a better chance of success. A new or improved deck is a less risky improvement as the return on your investment is almost 72%. Make sure you speak to a Realtor who knows the average return on your investment before you make any improvements. A knowledgeable Realtor can direct you to the appropriate projects to make your listing easier to sell.
5. It's better to look good than to feel good. The goal when selling your home is that buyers view it as move-in ready. This requires a keen eye to determine what needs to be "dressed up" and what style will entice the most buyers. The appearance of the homes in the neighborhood impacts on the most sought after interior design. A house decorated in a farm style or with an industrial vibe will be less attractive to buyers looking in a location where traditional home design reigns. Remember, your house is compared to the other homes for sale in the neighborhood. If you want to impress buyers, make your home attractive and elegant in keeping with the homes in your community.
So the items that needed to be shaped up are finished and your house is dressed to impress. Whether your home has the “cool” factor needed to beat the competition will be evident very quickly. In the end, if your home sells because it has a “nice personality,” then your design was successful. Well-reasoned interior design updates helped you reach the top of the most popular crowd. In this context, it's more valuable than it was on the grammer school playground.
Judi Berger is an attorney and real estate broker who is blogging as she begins a new chapter in her life.