The subject of home improvement is always a tough one. After all, a home is one of the largest investments we can ever expect to make in our lives. Our home is our castle. And if you’re living in Los Alamos County, chances are you waited, watched, and eventually were so thrilled to move into your home, that the space itself has become nearly sacrosanct. Of course, there’s also a chance that you’re itching to get started on modernizing your house! If that sounds familiar, then let’s discuss a few important points when it comes to recouping cost on a few common home improvement projects.
Data is one of those valuable tools we’ve all become accustomed to looking at when we talk about anything these days. It may (or may not) surprise you to know that there are entities out there collecting data on remodeling projects. One of the most comprehensive reports out there is the Cost vs. Value report. The data is collected by Remodeling Weekly, a publication that caters to contractors and other construction professionals. But the data itself is compiled by surveying Realtors, lenders, appraisers, and other real estate professionals. The purpose, of course, is to help contractors tailor their advertising in a way that helps them push the kinds of projects that homeowners might be more interested in paying for.
That said, we can also spin that report. It’s based on geographical information. And while Albuquerque is the closest metropolitan city that they take into consideration, that still makes it very useful to us here in Los Alamos County. So, the question still remains. What ARE the kind of home improvements that really pay off by increasing your home’s eventual price point in the market?
The Projects That Count
- Manufactured Stone Veneer
- Garage Door Replacement
- Minor Kitchen Remodel
- Siding Replacement (fiber cement)
- Siding Replacement (vinyl)
It’s not surprising to find things like a kitchen remodel or adding a bathroom or even remodeling a bathroom further on down the list. In fact, you can see that the minor kitchen remodel is number three . According to the “Remodeling” website, if you spend $23K and change on the job, you’re likely to get as much as 78% of that cost back in added value to your home. This is the way the list works, by the way. It speaks in terms of percentage of dollar spent that you might be likely to see added to the value of your home at resale.
“But Kendra, I don’t even HAVE a garage!”
Let’s look at this list in terms of our community, shall we? While adding a manufactured stone veneer to the area around your front door or garage might look fantastic and dramatically increase your curb appeal, that kind of project, along with replacement of garage doors, isn’t always right for homes here in our area.
Reading Between the Lines
Updating is important. That’s a common theme demonstrated by the data trends. Buyers care about updated windows and exterior features like steel entry doors. There is also an element of energy efficiency here. We all know that the old windows in those quads and duplexes in Western Area are paper thin and don’t do much of anything to mitigate heating and cooling costs. If you’re considering doing any of those home improvement projects for yourself, then the good news is that they’ll pay off in the future when you go to sell your home!
Flash doesn’t get much of a return. This is a REALLY important point, folks. We constantly hear and see photographs or layouts of kitchen and bathroom remodels that are out of this world! These projects can cost thousands upon thousands of dollars. And yet the data suggests that buyers don’t really WANT your Tuscan Style Kitchen.
Neat. Clean. Updated. That is the rule of thumb for these projects. A modest kitchen remodel includes updated countertops, flooring, cabinets, and appliances. A bathroom needs a new vanity, sink, countertop, lighting, and paint. While that may seem like a lot, it doesn’t have to include marble tile, imported countertops, and hand hewn cabinets. Just head to your nearest DIY store and see what they have available. You’ll be comfortable in the home while you’re there, and the next potential owner will fall in love faster.
Outdoor living spaces are hot! The bottom line here is that a deck is still a great investment. Especially in our community. Patios aren’t going to net you nearly as much return on investment as a deck, but investing in your landscaping and making the exterior living spaces of your home inviting is always a good idea that gets a high return on investment.
It’s Okay To Suit Yourself
In the end, it’s really important to think about your plans for your home when you consider home improvement projects. If you’ve purchased the home as an investment property, then by all means, carefully choose the identity and scope of your projects to maximize the value. But if it’s your HOME? Don’t forget to be comfortable in your own space. It’s okay to change something to suit YOU. Whether its the gourmet Tuscan Style Kitchen you’ve always dreamed of, or a master suite that comes straight from the Royal Boudoirs Collection. Dream as big as your budget will let you. Love your home! And if you’re ready to turn that investment house into a property for sale, then give me a call. I’d love to talk to you!
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