The Honest Broker: Smarter Renovation Decisions
Sometimes a home improvement project comes from an obvious need for more space or a repair that morphs into a renovation. In other cases, homeowners may be undecided about whether to upgrade their bathroom first or tackle the exterior of their home. Before the onset of covid-19, significant home upgrades could reduce the time a home spent on the market by about 11 days. Now, due to the decreased supply of homes in the real estate market, demand for properties is higher than ever and while upgrades may not have the same influential impact on time spent on the market, they have proved to significantly bolster the value of homes.
Performing certain renovations can add value to your home. For instance, data shows that remodeling an outdated kitchen and bathroom can increase the value of a home by approximately 27 percent. Remodeling an outdated bathroom increases the value of the home by 12 percent. Remodeling an outdated kitchen increases the value of the home by 19 percent. Remodeling both and outdated kitchen and bathroom increases the value of the home by 27 percent.
However, which home improvements provide the biggest bang for their buck?
There are five specific upgrades that have the highest rate of return on your investment. These are garage door replacements (97.5 percent ROI), manufactured stone veneers (94.9 percent), minor kitchen remodeling (80.5 percent), deck additions (75.6 percent) and entry door replacements (74.9 percent).
Larger renovations, such as adding a home office or a deck, along with updating kitchens, can also add meaningful value to your home. Not only have people completed more home projects than ever during the coronavirus pandemic, but the last 10 months have had a definite impact on which — and how many — home projects people completed. Because of the increased time spent at home, homeowners have required more from their homes as they cook, work, and find new ways to entertain from home.
The top three completed home projects in 2020 were, in order: interior painting, bathroom remodels and the installation of new flooring. As we continue into 2021, we anticipate that completed home updates will continue to rise and that the most popular home improvement projects will likely remain the same.
Diane Lott, Broker
Owner: Paradise Found Realty
Paradise Found Realty, Inc. of Palm City
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