Home Renovations: Making Smart Choices to Maximize ROI

Sprucing Up Your Home: Make Smart, Cost-Effective Choices When Renovating

Introduction:
Are you planning to spruce up your home? Whether you’re getting ready to sell your house or you’re just tired of having a dated kitchen or bathroom, it’s important to make smart, cost-effective choices when you renovate. This article aims to provide you with valuable insights to help you make informed decisions and get the most value for your remodeling buck.

1. Research and Consultation:
If you’re making upgrades in anticipation of selling your home, it’s crucial to do your research first. Mari Adam, a certified financial planner, advises homeowners to avoid over-improving their homes or undertaking idiosyncratic projects that won’t appeal to potential buyers. To gain a better understanding of your local market, consulting an experienced real estate agent is recommended. They can provide valuable insights into what’s selling and what’s not, helping you make informed decisions.

2. Cost vs. Value (CVV) Report:
The annual Cost vs. Value (CVV) report from Zonda can be a valuable resource for homeowners. This report analyzes 23 common home-renovation projects to determine how much value they retain at resale. The surprising findings of the 2024 CVV report challenge common assumptions. For example, while many homeowners believe that a kitchen or bath remodel will provide the most return on investment, the report reveals that a garage door replacement was the top-performing project. With an average cost of $4,513 and an $8,751 resale value, homeowners can recoup a whopping 194 percent of the cost.

3. The Power of Curb Appeal:
The top-performing projects on the 2024 CVV list are all exterior projects that enhance a home’s curb appeal. A steel entry-door replacement and installation of manufactured stone veneer ranked second and third, respectively. Clay DeKorne, chief editor of Zonda’s JLC group, emphasizes the importance of a buyer’s first impression. When potential buyers see a house with a shabby exterior, it directly affects their perception and how much they are willing to pay. A well-maintained exterior with fresh paint, flowers, and manicured landscaping gives buyers the impression that the rest of the house has received the same level of care and attention.

4. Projects to Avoid:
The CVV report also highlights home-improvement projects that don’t deliver value. An upscale bathroom addition, for instance, only returns 32.6 percent of its cost at sale, while an upscale primary suite addition has a return of just 23.9 percent. Home sellers should carefully assess their planned projects to ensure they don’t spend money they won’t get back upon the sale of their homes.

Conclusion:
When renovating your home, it’s essential to make smart, cost-effective choices. Researching the local market and consulting with a real estate agent can provide valuable insights. The CVV report from Zonda is another useful resource that reveals surprising findings about the highest-performing projects. Enhancing curb appeal through exterior projects can have a significant impact on buyers’ first impressions. Lastly, it’s important to avoid over-spending on projects that won’t yield a substantial return on investment. By making informed decisions, homeowners can spruce up their homes while maximizing their potential resale value.