The New Year is a perfect time to take stock of home-improvement goals.
But not all space makeovers are created equal.
Resale-minded homeowners can boost their property value by investing in updates and renovations that recoup the most bang for their remodeling buck. But a tight real-estate market forces homeowners to pick and choose the updates that are worth pursuing.
Considering a splurge like a pool or a home theater? That may improve your quality of life but the investment could over-improve your property if it means your house will out-price most others in the neighborhood. Or take a more practical approach by completing only the projects that will increase your bottom line.
The best guide for choosing such money-smart renovations is the neighborhood itself, says Sid Davis, author of “Home Makeovers That Sell” ($15, Amacom Books). Stay consistent with the renovations and updates completed by neighbors in order to avoid investing in an improvement that may negatively impact your home’s value.
For instance, don’t do granite counters if laminate is more popular and marketable in your area. But do spring for an extra bathroom if most homes in the neighborhood have three and yours only has two.
If you want a pool, go ahead and build one. But understand this: if no other home in the area has one, you won’t likely reap any benefit other than better health from logging laps.
What’s more, if the average price of a home is $220,000, it makes little sense to add a $100,000 addition, experts say. The house may ultimately be perceived as overpriced, and may not sell quickly.
“The neighborhood determines what your home is worth,” Davis says. “Work within those parameters and don’t try to make your house something” it isn’t.
Be a brazen, snoopy neighbor for renovation input and ideas. Take notes during open houses. Visit new subdivisions to glean cutting-edge decorating styles.
The smart money is on kitchen and bathroom updates. Those rooms tend to have the greatest investment return: 102 percent for a minor bathroom remodel, according to the National Association of Realtors. A minor kitchen remodel nets 98.5 percent in returns.
“It’s just drywall, paint and carpet in the other rooms,” explains Darryl Starman, owner of the Kitchen Tune Up business in Aurora. “Sixty percent of (building) costs come from … the cabinetry, the applian ces, the electrical and the plumbing.”
Staff writer Sheba R. Wheeler can be reached at 303-954-1283 or swheeler@denverpost.com.
ADDITIONS: Nationally, the return on family-room additions is about 80 percent. Costs run between $40,000 and $60,000.
Note: Make sure any addition ties into the home’s architecture. A bad “tack-on” can actually lower the home’s value. Consult an appraiser before you add on.
BATHROOM: The average bathroom fix-up has an investment return of 102 percent. Replacing a tub, sink/counter/vanity, toilet, tub surround, shower, light fixtures or flooring costs, on average, between $8,000 and $10,000.
Project: Clean grout, re-caulk and reglaze tub for a like-new finish
Estimated cost: $300 to $400
Project: Install a new vanity
Estimated cost: $400 to $4,000
Project: Install a new sink
Estimated cost: $150 to $500
Note: The mirror is an important focal point. Consider replacing a flat, square mirror with something more decorative.
BASEMENT REMODEL: The average return on a basement remodel is 90 percent since this project can double a home’s communal living space. These cost is between $30,000 and $50,000.
Project: Create a wet bar
Estimated cost: $2,500 for cabinets, laminate countertop, stainless steel drop-in bar sink and mini fridge.
Note: Refrain from creating overzealous media rooms unless this is popular in your real estate market.
CURB APPEAL: Upgrading a home’s landscaping in particular can yield 100 percent return on the investment.
Project: Refinishing the front door
Estimated cost: $60
Project: Power-washing vinyl siding
Estimated cost: $80 to $100 for equipment rental
Project: Installing a sprinkler system
Estimated cost: $1,500 to $3,000
Project: Replacing the roof
Estimated cost: 20-year shingles will run $4,000 to $6,000; $6,000 to $8,000 for 30-year shingles.
Note: If everyone else in the neighborhood has asphalt, don’t bother with high-end roofing products like copper, slate or stainless steel.
DECK: Adding a deck costs $4,000 to $10,000. The average investment return is 90 percent.
Note: Some areas value decks even more, making the investment return as high as 150 percent. Check with real-estate agents to find out what styles buyers like most.
KITCHEN: Minor kitchen remodels net 98.5 percent in average returns. The average cost of a single project is $14,691; average recoupment is $14,913.
Project: Refinish cabinets and replace hardware
Estimated cost: $200 to $500
Project: Replace flooring with vinyl, wood or tile. (Install it yourself to cut down on expenses.)
Estimate cost: $1,500 to $4,500
Project: Update appliances
Estimated cost: $2,500 to $3,500
Note: It’s cheaper to refinish existing cabinets than it is to replace them. Sand down cabinets and restain or paint them for added value.
