Which Remodeling Projects Give the Highest Return?
Remodeling Magazine does an annual estimate of the returns you can expect to see when remodeling your home. Many people considering remodeling as an alternative to purchasing a new home, particularly for older and moderately priced homes. Homes in the moderate price range (under $250,000) in Daytona Beach and the surrounding areas move fast and bargains are hard to come by. The condition of the home will be a large factor in determining the final selling price.
Will you be able to recover your remodeling costs if you stay in your existing home and remodel, or buy a home and need to remodel? The answer is almost always NO. The annual estimate from Remodeling gives you a sense of which remodeling projects will give you better bang for your buck, but still reflects remodeling projects as a loss.
The highest return in the Daytona Beach area for remodeling is for Manufactured Stone Veneer at 88% and lowest return is for an Upscale Master Suite Addition at 35%. Most of us aren’t that handy, so we need to hire contractors to do the work, but if you are doing the remodeling work yourself, you’ve got a fighting chance to come out ahead. That sweat equity can be very valuable when you sell.
It's interesting to note, that despite the perceived value of upscale additions, the return is less across the board than midrange upgrades.
You can get the Remodeling Magazine Cost vs. Value Report by clicking here. The report will show you how much you might expect in return from your improvements when you sell. This is an invaluable tool in preparing for any home improvement project or renovation, especially with the intent of adding resale value.
Many sellers are shocked when they find out that the tens of thousands of dollars they spent remodeling will not be recovered.
As a buyer or seller, it's critical to know that improvement costs you make will not be fully recovered, so choose wisely. The Remodeling list gives you some information that can help you make a better decision. I don’t agree with how high some of the cost estimates are as shown in the report, but I do agree that full value will not be recovered unless you do a good portion of the work yourself.
Another consideration that you may not have thought about is buying a new home. David Byrne, my partner in real estate for the past 14 years (and my son), just found incredible value through purchasing a new home in the River Oaks community. There's something to be said for new and ready to move in.