Thanks to HGTV, home renovations are more popular than ever. Chip and Joanna, Bobby Berk, and The Property Brothers have all become household names. Instagram is filled with accounts dedicated to before and after photos and we won’t even start with Pinterest. In real life, remodeling your home is not always so glamorous and it can require a lot of forethought – especially if you are thinking about selling your home.
Before you spend money on home-improvement projects, there are two important questions to ask yourself:
- Are you making the improvements for your own enjoyment or for resale value?
- How long do you intend to be in the property, and how much is your own enjoyment worth to you?
The Big Picture
Each year, a national report looks at the average costs and return for 22 remodeling projects and the value they bring at resale in 101 US markets. answers might surprise you.
In the Los Angeles Metro Area, only two projects increase the value more than what you’ll spend:
- A manufactured stone veneer at 120.2% of the cost
- A garage door replacement at 106.6%.
Of the two, garage door replacement is less expensive at an average cost of $3,956. (And to be honest, we’re not seeing a lot of manufactured stone veneers in Long Beach and it’s not something we recommend. We’re not sure who was surveyed for this report.)
Predictably, the cost for renovations has gone up in 2020 vs 2019, but interestingly, the perceived value of these projects has gone down. A rocky economy and a predicted recession (if we’re not in one already) have lead to consumers taking even more caution when buying a home. This consumer anxiety means it is more important than ever to really consider what home renovations you’re doing and why.
Projects With The Biggest Return
According to the report, projects that will net you more than 90% of what you’ll spend are as follows:
- Minor, mid-range kitchen remodel, with a cost of $26,993 will net you 95.1% of what you spend.
- Entry door replacement will net you 91.2% of the $2,119 cost.
You’ll get at least 80% return on your spend for the following projects:
- Deck addition
- Siding replacement
- Asphalt shingle roof replacement
Is Remodeling Right for Me?
If you’re going to be in your home for some time, some renovations may be good investments. Depending on how much enjoyment you’ll get from a renovation, and what that’s worth to you, choosing a project with less return on investment might still be the right choice for you.
However, if your plan is to sell your home within the next year or so, the projects you should be spending money and time on may not be remodeling. The biggest return on your investment is usually from cleaning, decluttering, fixing things that are broken, painting, and sprucing up the landscaping. By the way, if you’re thinking of any DIY projects, some are better left to the pros.
Exactly what we recommend if you’re making improvements for resale will depend on the condition, location, and style of your home and what your timeframe and budget are. If you have any thoughts of selling your home and you’d like specific recommendations or referrals to someone who can do the work, give us a call.