Every homeowner has a laundry list of improvements they'd like to make on their home. The problem most homeowners run into is that they aren't thinking ahead to the improvements that will provide the best return on their investment. Whether you plan to stay in your home a few short years or you're in it for the long haul, it's still a good idea to recognize the issues - positive or negative - that affect your home's resale value. A recent "Cost vs. Value Report" completed by Remodeling Online divides homes into two major categories (mid-range and upscale) to help homeowners determine where best to spend their money. This article focuses on those mid-range improvements that will bring you the best return on investment (ROI) in the Rolla/St. James, Missouri area.
Replace your Siding
With an 80.9% average rate of return, a phenomenal return for the Midwest, siding replacement was the overall winner for this region. This should be your first indication that buyers really do focus on curb appeal. As with any business, first impressions in real estate are important. You'd be surprised how many people rule out a home just by driving by. I have been on my way to show countless homes, only to find that once the buyer sees the outside of the home, they don't even bother looking inside. They may never see the remodeled bathrooms or new carpet you just invested all your time and energy in, so be sure that your first impression is positive and sticks with them.
Add a Deck
Wooden deck additions came inB50 a close second with a 78.4% ROI. The great rate of return on decks stems in part from the fact that a wooden deck addition is extremely cost-effective. If your home is lacking a deck or similar outdoor space, consider adding a simple wooden deck to spice up the entertaining aspect of your back yard.
Replace Outdate or Inefficient Windows
Exhibiting a 73.7% ROI, vinyl window replacement came in strong as well, with wooden windows not far behind at 70.2%ROI. Window replacement continues to support the importance of curb appeal, and it also shows that buyers are interested in lower energy bills. So, not only do windows increase a home's external appearance, they also help cut down on rising energy costs.
Spruce up the Kitchen & Bath
Any Realtor will tell you that new updates in the kitchen and bath sell a home extremely quickly. Kitchen remodels were categorized as major or minor, with minor remodels edging out major remodels 71.5% to 70.9%. Close behind were bathroom remodels with 68.8%, and bathroom additions came in at 61.8% ROI. Overall, these numbers are fairly strong, which proves that there is truth to the idea that buyers will walk away from a potential home that is lacking a quality kitchen and/or baths.
The Bottom of the Barrel
Roof replacement and office remodels finished at the bottom of the pack. Roof replacements are something that people address when they need to, but not usually because they want to, which brought this remodel in with 59.3% ROI. Few buyers are likely to replace a functional roof for aesthetic reasons, which factors in to its low ROI. However, the office remodel finished even lower, with 53% ROI, probably because most people don't view a home office space as necessary. Buyers are more likely to value rooms important in their everyday living, like kitchens, bathrooms, and family rooms, and see an office space as more of a bonus than a necessity.
This list is by no means a cut-and-dry order of areas you should remodel, but it does give you a general guideline of the remodels that might have greater benefit when it comes time to sell your home. Remember, though, that the location of your home, construction costs, and time frame are constantly changing and uncontrollable variables that can greatly affect these percentages.
Special thanks to: 2007 Hanley Wood, LLC for most of the statistics. Reproduced by permission. Complete city data from Remodeling Online 2007. Cost vs. Value Report can be downloaded for free at www.costvsvalue.com.
Justin Renaud is a REALTOR working in the Rolla Missouri Real Estate market. He has been working with buyers and sellers full-time for the last three years. His website 16E7http://www.justinrenaud.com is a resource for buyers, sellers, and homeowners to find helpful advice as well as resources discussing the areas of Rolla, MO and St. James, MO.
The information for this article uses statistics for the St. Louis, MO region according to http://www.costvsvalue.com
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