In this new year, is giving your home a refresh on your resolution list? Don’t let the thought of cost, not knowing where to start or concern over inconvenience deter you from making your renovation resolutions a reality. This month, I am covering some strategic renovation suggestions to inspire wise home renovations. The goal of any renovation should be results that will be attractive to you and a future buyer. Smart renovations should also provide a path to recouping renovation costs at resale especially if selling your home is part of your near-term plans.
Year after year, and in all types of markets, the kitchen remains a room in the house that when remodeled, reliably increases resale value. Its status as one of the best rooms to renovate for resale isn’t likely to change any time soon. Simply put, buyers love lots of upgrades and even a minor kitchen remodel tends to involve a lot of upgrades. Below I have included some estimated costs and approximate percentages of recoup at resale to demonstrate why updating your kitchen should be at the top of a remodel priority list.
Minor kitchen remodel – The average cost of a minor kitchen remodel is around $15,000 and covers updates like resurfacing cabinets and drawers, a new wall oven, cooktop, sink & fixtures, quartz countertops, and flooring.
Resale Recoup Potential – Average recoup at resale for a minor kitchen remodel is $15,000 making its recoup rate an attractive, 98.5 percent.
Midrange major kitchen remodel – The average cost of a midrange major kitchen remodel is around $44,000 and includes updates like new cabinetry, an island, countertops, engineered hardwood flooring, and appliances.
Resale Recoup Potential: The average recoup at resale for a midrange major kitchen is around 91 percent or just over $40,000.
Similar to kitchens, both minor and major bathroom remodels prove to be another reliable room to put renovation dollars into. Experts suggest that a minor bathroom remodel that that costs around $10,500 and includes replacing the tub, surrounding tile, replacing the floor, toilet, sink vanity, and fixtures can an average up to 102 percent return at resale! A major bathroom remodel that may include things such as reconfigured tubs and toilets, expansion of the room and adding designer sinks and faucets may run you about $26,000, but average resale recoup potential can be as high as 94%.
A third strategic renovation project I would suggest considering is updating or adding decking. For around $11,000 you can install a 16 x 20 ft. pressure treated wood deck with a simple pattern. This fairly inexpensive project is likely to return about 90 percent of the cost back, or $9,900, at resale.
These costs and recoup at resale percentages are general estimates and are meant to help you prioritize your renovation plans with an eye to maximizing your return on investment. If you have questions about how to get your home ready to sell or are ready for an agent to help you sell your home please, give me a call.