Remodeling Your Home: Return on Investment

Home remodeling is two of the scariest words to most homeowners. Whether it is simply picking out a new front door from one of RBA’s catalogs or hiring a contractor, demolition, new construction, plumbing, design, etc, etc, there are some very important questions you should ask yourself.

• How long am I planning to stay in this house?
• What will our budget allow for in the remodel?
• If selling:
  • What are other homes selling for?
  • What would bring our house up to par?
  • How strong is resale value in our area?

According to local real estate agent, James Rhoads, “Emotions buy and sell homes and two things that people fall in love with are remodeled kitchens and bathrooms.”

Kitchens

Kitchens are now considered the new “heart of the home” and likely the place where most people will be. Last year, according to Remodeling Magazine, the national average for Return on Investment (ROI) on remodeled kitchens was 68.7%, with Central Pennsylvania’s ROI at 62.9%. I know what most homeowners will think; even though that seems lower than normal; remember it will also help get your home off the market faster than non-upgraded kitchens.

Bathrooms

Bathrooms are the second most popular in home improvement projects and, safe to say, the scariest project to take on for most home owners. Most home owners can choose to do minimal upgrades and still expect to receive a great ROI and overall reception from potential home buyers at 61%. Things such as replacing fixtures, painting, and installing a new vanity top can be done for around $1,000. But, some homeowners still choose to gut the entire bathroom and start from scratch which can run at least $10,000.

“Simple fixes, such as fresh coat of paint or flooring, could see a great ROI when it comes time to sell your house,” says James. Not all home improvements have to be major, a little TLC can make your home much more desirable to buyers and more comfortable to live in if you are not planning on selling in the near future.

“Showing pride in ownership especially when dealing with outside renovations can have a great ROI. Especially when you see how inexpensive a little tanbark, top soil, and fresh flowers could be. Buyers love to see that pulling up to a house and it puts them at ease when looking through.”

No matter what your next home improvement project is, make sure you stay within a budget that you set for yourself and any renovations that you complete don’t price your home out of the area you are in.

For more information on real estate in the Harrisburg area, contact James Rhoads, Prudential Home Sale Group.