The National Association of Realtors recently published its annual report on the cost of various home improvements versus the value they add to that home.
Below, we will show the top ten home improvements and the percentage of the cost of that improvement that is recouped upon sale.
1. Bathroom Remodel 102.2%
2. Minor Kitchen Remodel 98.5%
3. Siding Replacement 95.5%
4. Attic Bedroom 93.5%
5. Deck Addition 90.3%
6. Basement Remodel 90.1%
7. Window Replacement 89.6%
8. Roof Replacement 84.7%
9. Family Room Addition 83.0%
10. Home Office Remodel 72.8%
As you can see, many projects are quite beneficial when selling your home. More important, however, is the effect that not doing some of these improvements can have. For example, an old fashioned bathroom or kitchen can often cause a home to languish on the market.
Remember, when planning these projects get estimates, references and a contract in writing. Also, do not try to cut costs by not pulling permits. First, they provide an additional level of protection for you from shoddy work. Secondly, that unpermitted 500 sq. ft addition could devalue your home due to the cost of remedial work to bring it up to code, or the very real possibility of having to remove it entirely. Finally, if it isn't legally there, the best an appraiser could do would be to ignore its existence; at worse it could have a detrimental effect on appraised value.
Now get to work.
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