Have you wondered whether it would be worthwhile to remodel certain areas of your home prior to sale? Wondering with the finite amount of money available, would it make better sense to spend money on a new roof or to upgrade the kitchen (you can find the answer below)? Naturally, the big question is: what type of ROI am I looking at? There may be confusion out there because different people have different opinions on this subject. Yet, in order to make an informed decision, you need data for guidance.
If you want a lot of activity in your listing - who doesn't - you must drive buyers to your property by modernizing it and making it more desirable for the average buyer. Wouldn't it be nice to get some quantifiable numbers to help with your decision making before laying down your money?
There was an article from in our trade magazine called the Realtor a couple of months ago, which annually addresses this question and reveals what types of remodels are the best. They took data of 25 different types of remodel jobs from 60 cities and quantified the rate of return. The article helped shed some light on the questions we raised above or question you may have about what to do to your own home next.
Here, in the remodeling arena, we do better here in the West Coast than the rest of the country. In our region, the top five best returns are on: minor kitchen remodel (106.4%), bathroom remodel (103.2% ), mid range wood window replacement (102.2%), upscale siding replacement (101.8%) and second story addition (101.5%). Concurrently, the worst five returns are: sunroom addition (70.6%), home office remodel (77.7%), family room addition (81.8%), upscale master suite addition (83.3%) and upscale roof replacement (84.9%).
So there you have it. If you are going to do some work on your home, might as well work on the kitchen and bathroom. And as you will get more money than you put into it anyway, might as well consider getting it done about a year before you make up your mind to move and get some use out of it for your family rather than doing it for the benefit of the new owners. That will truly be a win - win situation.
Steve Mun, Silicon Valley Realtor
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