Thursday, April 26, 2012

Remodeling ROI

Over the last few years, many homeowners disgruntled with the housing market have decided to remodel their current home rather than move to a new one.  Although interest rates continue to be be low and the housing market on the near West Side of Madison has improved substantially over the last year, some homeowners are still inclined to remodel.  Nothing wrong with that!  Before you decide to jump into a remodel, be sure you know what kind of return to expect.  Here are few things to think about.

  1. The kitchen – The kitchen will give you the biggest bang for your buck.  Whether it’s a major remodel or a simple face lift, putting a fresh face on your kitchen is your best investment. If you are making changes to sell your home, don't go overboard, choose high end finishes and fixtures only if you plan to stay for a while.  Expect an 85 percent return on your investment.
  2. The bathroom – An outdated bathroom can be a real downer. The large soaker tubs that were popular several years ago are being replaced with large walk-in showers.  A major renovation could cost less than $20,000, but it should yield an 80 percent return.
  3. Decks/Patios – A new deck or patio can cost a few thousand to tens of thousands of dollars, depending on size and materials used.  Stone patios in lieu of the traditional deck is becoming more popular, but will also cost you more in materials and labor. If the deck/patio is well done and incorporates inside space with outside space, your return could be more than 80 percent.
  4. Landscaping – With the warm months of spring and summer upon us, landscaping becomes more important.  Don't underestimate to value landscaping can add to the curb appeal of your home as well as the enjoyment of a beautiful yard and garden.  Professional landscaping can cost as much as $20,000, depend on the size and scope of the project.  But you can expect to reap 110 percent return on your investment.
  5. Window replacement –  New windows offer energy efficiency as well as improve safety, in some cases.  The number of windows you replace and the type of window you choose will impact the cost, but you can expect a return of about 70 percent.

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