Homeowners will eventually remodel something in their home at some point. Not all the projects that you take on in your home will add value.
According to data from the Contractor Growth Network, the most popular renovation is the bathroom. The kitchen and the basement renovations follow this. This does not mean that these popular renovations will bring a big return when you sell your home. In fact, a report from Cost vs. Value says that homeowners will only get around 60% return on renovations. The biggest renovation that will give you a bang for your buck is a home’s curb appeal.
“You have to throw away everything you see on HGTV,” said Todd Tomalak of CNBC.
Those that homeowners will see at least 100% maybe over are surprising. They include HVAC electrification with 103% recoup costs, garage door replacement also at 103%, replacement house siding with stone veneer at 102%, and entry door replacement at 101%. This means that if you pay $17,747 for HVAC electrification, then you will get $18,366 on the resale.
This is great news for current homeowners because more and more homeowners are keeping their homes and not selling. They are looking to fix up their home instead of moving. High home prices and high interest rates are the catalysts for this.
When you are ready to start a project, get several bids and interview several. Take the price they quote and pad it by 10% for extra expenses. A great way to cover the cost is through a home equity loan or a home equity line of credit.
“Make sure you can work these monthly payments into your budget before you begin,” explains Sophia Bera Daigle, CEO and founder of Gen Y Planning.
