Highest return

Selling a home or investment property is generally a straightforward task. However, a common challenge is determining what renovations are worth the effort and expense to optimize marketability — so you can get top dollar and make a profit.

A recent Realtor.com survey shows that more than half of homeowners consider renovating and readying their homes for the market as their least favorite aspects of selling a home. Although sometimes exhausting and with economic ramifications, both steps are crucial.

Each year Remodeling Magazine publishes the Cost vs. Value Report, which analyzes the ROI homeowners gain for specific renovations to their homes. The report is a valuable resource for homeowners committed to maximizing their returns. The 2023 edition revealed both consistencies and surprises in the home renovation market.

The below graphic summarizes the findings and here are the highlights.

• Overall, exterior projects generate a higher ROI than interior projects, as consistent with data published in every previous Cost Vs. Value Report. To put into context, seven of the top 10 projects with the highest ROI reported in this year’s issue are exterior projects. An indication that home buyers see real value in having new exterior doors, garage doors, and windows. They also appreciate an updated exterior; vinyl siding, fiber cement siding, and brick veneer additions all made the top 10 — and should recoup at least 61% of their cost.

• Even budget renovations could generate a decent return on your investment. The two least expensive projects — entry door replacement and garage door replacement — placed fourth and second, respectively, on the list of 23 jobs that were ranked.

• This year, mid-range major room remodels are expected to yield ROI that surpasses their upscale counterparts. This estimation extends to kitchens and bathrooms in both categories. Similar superior economic performance is also anticipated for bathroom additions. In other words, for 2023, mid-range is better than upscale.

• Government mandates or directives affect homebuyer’s expectations. The renovation surprisingly at the top of the list — converting the HVAC system to electricity — is a priority concern for many, especially if they live in or near one of approximately 100 cities that either mandate or incentivize them to convert to electric heating, cooling, and cooking systems. Buyers are willing to pay a premium for homes whose owners have been proactive about this switch.

Reach out to me for additional insights and referrals to optimize your property’s marketability.

Furthermore, if you need help deciding which are the best renovations for your particular situation, consider contacting the folks at Renovation Sells. They can help you design, construct, and finance the renovations that can yield a strong ROI. Renovate wisely- Henry