5 Home Renovation Projects With Good Return on Investment
BOSTON (TheStreet) -- Spring is a popular time for
home-renovation projects, but a recent study by Remodeling magazine and the National Association of
Realtors found that not all upgrades are created equal when it comes to
reselling your place.
"I always recommend making very wise use of your remodeling
dollars to get a good return on investment,"
says Judy Moore, a suburban Boston real estate agent and a National
Association of Realtors board member.
Remodeling recently estimated costs of 35
popular home-renovation projects in 81 major cities, then polled some 3,900
Realtors to calculate how much each upgrade would add to a property's value.
That allowed the magazine to create the Remodeling 2012-13 Cost vs. Value Report -- national
and local rankings of which projects offer the best and worst ROI when
homeowners later sell their properties.
For example, the study found that you'll
recoup 102.9% of the $3,014 that adding upscale garage doors costs in Los
Angeles -- but only 32.9% of the $29,370 you'll pay for a home-office remodeling
in Detroit.
"You don't want to put something in that a
buyer isn't going to want to pay extra for," Moore says.
None of the projects studied offer a 100%
or better return on their average nationwide price, meaning most U.S. homeowners
will theoretically lose money on any job.
But some projects do provide at least a 100%
ROI in certain cities, while Moore adds that you "have to look at the total
package" when calculating an upgrade's overall value.
"If I walk into a house that has and old
kitchen or an old bathroom that needs a ton of work, that might be a problem to
sell 'as-is,'" she says.
Here's a look at the five best projects Remodeling found offer the best nationwide average returns
on investment. (The Remodeling 2012-13
Cost vs. Value Report is copyrighted by
magazine publisher Hanley Wood, but
data from the study can be downloaded for
free at www.costvsvalue.com.)
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