Wednesday, March 12, 2014

Renovations that bring the greatest percentage return on investment:



I working with Buyer who is also contractor and we are searching for the house that need some Renovation. After looking some house I and my buyer sat and decided which improvement in the house will appreciate more in money …

"Whatever your home improvement is ... I strongly discourage designing new spaces in a fashion that's incongruous with the rest of the house's architectural vernacular."

According to Remodeling magazine's annual Cost vs. Value Report for 2014  followiing are the few :

v  Front Door :  A new front door, which on average adds 96.6 percent of the amount you spent to the value to your home. "It has to be the right front door." Keep in mind that sometimes painting the existing front door provides the same payoff.

v  Replacing old elements, such as doors, windows and siding, in general yielded a better financial return than bigger remodeling projects, such as additions.

v  The report found that kitchen projects yielded a higher return than bath projects, with a minor kitchen remodel adding 82.7 percent of the project's cost back to the home's value. Kitchens are important, because would-be buyers often overestimate how much they would cost to update. The average cost of a minor kitchen remodel -- new cabinet doors, appliances, countertops, sink, faucet, paint and hardware -- usually $18,856 nationwide, according to the Cost vs. Value report. 

But, like the front door, it's important to do the right kitchen remodel. Adding a $75,000 kitchen to a $100,000 house is unlikely to yield $75,000 in value.
 As a general rule, look to spend about 25% of the home's value for a new kitchen and 12 % to 15% for an updated bathroom.

Which improvements will pay off  what varies not only regionally, but also neighborhood by neighborhood :

v  A pool will add more value to homes in some warmer climate neighborhoods than in colder climate it is just an expanse to have it.
v  Turning attics into usable space or into bedroom  is a popular and profitable improvement.
v  Replacing windows with French doors that open to the backyard is another popular, and not very expensive, renovation project. "It makes the room feel bigger and gives you somewhere to go," 
v  For people who plan to stay in their homes, investing in those projects, as well as in more energy-efficient heating and air conditioning systems and appliances, saves money all year.

Here are the home renovations that Remodeling's Cost vs. Value study says will give you the biggest bang for your buck, as well as projects that generate the lowest return.

Renovations that bring the greatest percentage return on investment:
-- Entry door replacement: 96.6 percent
-- Deck addition (wood): 87.4 percent
-- Attic bedroom: 84.3 percent
-- Garage door replacement: 83.7 percent
-- Minor kitchen remodel: 82.7 percent
Renovations that yield the smallest return:
-- Home office remodel: 48.9 percent
-- Sunroom addition: 51.7 percent
-- Bathroom addition: 60.1 percent
-- Backup power generation: 67.5 percent

-- Master suite addition: 67.5 percent

courtsey : U.S.News & World Report LP

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