Hello soon-to-be home seller! You're readying your home for sale and you're wondering if there are certain remodeling/updating projects for your home that will give you the best ROI (Return On Investment). It just so happens that the folks over at National Association of Realtors' REALTOR® Magazine sorted through a hefty amount of compiled data on this topic and came up with these list of Midrange and Upscale Top 10 Remodeling Projects That Offer the Biggest Returns:
Top 10 Midrange Projects1. Entry Door Replacement (steel) 2. Deck Addition (wood) 3. Garage Door Replacement 4. Minor Kitchen Remodel 5. Window Replacement (wood) (tie) 6. Attic Bedroom Addition (tie) 6. Siding Replacement (vinyl) 7. Window Replacement (vinyl) 8. Basement Remodel 9. Major Kitchen Remodel 10. Deck Addition (composite) |
Top 10 Upscale Projects1. Siding Replacement (fiber-cement) 2. Garage Door Replacement 3. Siding Replacement (foam-backed vinyl) 4. Window Replacement (vinyl) 5. Window Replacement (wood) 6. Grand Entrance (fiberglass) 7. Deck Addition (composite) 8. Major Kitchen Remodel 9. Bathroom Remodel 10. Roofing Replacement |
Several of these projects have a sizable price tag. And, let's be honest, if you're adding a new deck on your home or replacing drafty windows, you may fall into the "Love It or List It" trap where you complete a great remodel or renovation and then you don't want to move! For some smaller and less expensive options to get your home ready to sell with a fresh look, check out an earlier post we wrote with other tips to sell your home: Top 8 Home Selling Strategies.
The data come from the 2013 Cost vs. Value Report, a report created each year by Remodeling Magazine and REALTOR(R) Magazine. We looked at the sub-report for the Pacific region which is a combination of San Francisco, L.A, Anchorage and Honolulu, just to name a few of the included cities. The numbers may not be 100% spot-on for San Francisco real estate but the information is definitely worth a look. (Full disclosure: There is a downloadable report for San Francisco and it required submitting more information than we felt was necessary so we skipped it.)
One chart in the Trends report is interesting because it shows that the Pacific region has the highest overall percentage of costs recouped - not really surprising given higher construction costs and higher home sales prices in this part of the country. And then there is this category, "Number of Projects with ROI Above an Historical Average of 86.7%", in which San Francisco has a strong showing:
Even in a seller's market like the one we are seeing in San Francisco, present your home in the best possible light and a strong sales price will be your reward.
