When it comes to doing upgrades for your home, it’s easy to get carried away. Knowing what will maximize value will help you make better decisions about the kinds of projects you choose to do.
A recent survey from the National Association of Realtors found that almost ANY home improvement project created the same level of “joy” for the homeowner when completed. It didn’t matter whether it was having the cabinets painted, a bathroom remodel or an entire wing added to the home, the “joy score” (believe me, that is not my term) was almost identical! For example, on a scale of 1-10 (1 being least and 10 being best), doing an entire kitchen remodel gave the home owner a 9.8 on the joy scale but simply adding a new steel front door gave the home owner a 9.7! The kitchen remodel may cost $20,000 and the steel front door might cost only $2,000 but the level of joy it gave the home owner was almost identical!
Now that we know basically any project we do will make us equally happy, we can now make smarter decisions as to what projects will give us the most return on our investment!
This is the part where I am going to mix facts with opinion.
Fact 1) According to the National Association of Realtors, replacing your front door gives a 101.8% return on investment. This is the highest return on investment, on average, across the United States. I know it isn’t fancy but I did mention this in a previous blog post which you can read HERE.
Opinion 1) While replacing your front door may yield the best ROI by survey numbers, it has been my experience that new paint and carpet yield the highest return for my clients. Investing as little as $5,000 in your home with new paint and carpet will get you at minimum a dollar for dollar return on your investment, if not more. This statement however becomes less and less true, the better condition your carpet and paint is. If you have clean baseboards and walls and only slightly worn carpet, that return is likely not going to be even fifty cents on the dollar. This is where a professional can help you understand if the juice is worth the squeeze. Don’t spend a dime if you don’t have to!
Fact 2) Stone veneer near entrance gives 92.2% ROI. I’m happy this stat came from the NAR because I would not have guessed this. That being said, stone isn’t that expensive and neither is the labor for putting up the stone. If it costs $5,000 to put up a stone veneer and it is done tastefully, I can certainly see how this would add great curb appeal.
Opinion 2) Update the appliances. For a mere $3,000 you can get all new stainless steel appliances that give your home the illusion of an updated kitchen. Plus, who doesn’t like new things?
If you’d like to discuss ideas of how to maximize the value in your home, email me at Cory@corysellshomes.com
Obligatory Disclaimer Alert: Cory McLindsay (that’s me) is a Licensed Real Estate Agent in the State of Arizona.
According to Cory 