Hello soon-to-be home seller!  You’re readying your home for sale and you’re wondering if there are certain remodeling/updating projects for your home that will give you the best ROI (Return On Investment).  It just so happens that the folks over at National Association of Realtors‘ REALTOR® Magazine sorted through a hefty amount of compiled data on this topic and came up with these list of Midrange and Upscale Top 10 Remodeling Projects That Offer the Biggest Returns:
Top 10 Midrange Projects
1. Entry Door Replacement (steel)  Job Cost: $1,137 Resale Value: $974 Cost Recouped: 85.6 percent 2. Deck Addition (wood) Job Cost: $9,327 Resale Value: $7,213 Cost Recouped: 77.3 percent 3. Garage Door Replacement  Job Cost: $1,496 Resale Value: $1,132 Cost Recouped: 75.7 percent 4. Minor Kitchen Remodel  Job Cost: $18,527 Resale Value: $13,977 Cost Recouped: 75.4 percent 5. Window Replacement (wood) Job Cost: $10,708 Resale Value: $7,852 Cost Recouped: 73.3 percent (tie) 6. Attic Bedroom Addition  Job Cost: $47,919 Resale Value: $34,916 Cost Recouped: 72.9 percent (tie) 6. Siding Replacement (vinyl)  Job Cost: $11,192 Resale Value: $8,154 Cost Recouped: 72.9 percent 7. Window Replacement (vinyl) Job Cost: $9,770 Resale Value: $6,961 Cost Recouped: 71.2 percent 8. Basement Remodel  Job Cost: $61,303 Resale Value: $43,095 Cost Recouped: 70.3 percent 9. Major Kitchen Remodel  Job Cost: $53,931 Resale Value: $37,139 Cost Recouped: 68.9 percent 10. Deck Addition (composite)  Job Cost: $15,084 Resale Value: $10,184 Cost Recouped: 67.5 percent
Top 10 Upscale Projects
1. Siding Replacement (fiber-cement) Job Cost: $13,083 Resale Value: $10,379 Cost Recouped: 79.3 percent 2. Garage Door Replacement Job Cost: $2,720 Resale Value: $2,046 Cost Recouped: 75.2 percent 3. Siding Replacement (foam-backed vinyl) Job Cost: $13,818 Resale Value: $9,926 Cost Recouped: 71.8 percent 4. Window Replacement (vinyl) Job Cost: $13,055 Resale Value: $9,295 Cost Recouped: 71.2 percent 5. Window Replacement (wood) Job Cost: $16,361 Resale Value: $11,194 Cost Recouped: 68.4 percent 6. Grand Entrance (fiberglass) Job Cost: $7,088 Resale Value: $4,528 Cost Recouped: 63.9 percent 7. Deck Addition (composite) Job Cost: $34,403 Resale Value: $20,532 Cost Recouped: 59.7 percent 8. Major Kitchen Remodel Job Cost: $107,406 Resale Value: $64,113 Cost Recouped: 59.7 percent 9. Bathroom Remodel Job Cost: $50,007 Resale Value: $29,162 Cost Recouped: 58.3 percent 10. Roofing Replacement Job Cost: $33,880 Resale Value: $19,194 Cost Recouped: 56.7 percent
Several of these projects have a sizable price tag.  And, let’s be honest, if you’re adding a new deck on your home or replacing drafty windows, you may fall into the “Love It or List It” trap where you complete a great remodel or renovation and then you don’t want to move!   For some smaller and less expensive options to get your home ready to sell with a fresh look, check out an earlier post we wrote with other tips to sell your home:  Top 8 Home Selling Strategies. The data come from the 2013 Cost vs. Value Report, a report created each year by Remodeling Magazine and REALTOR(R) Magazine.  We looked at the sub-report for the Pacific region which is a combination of San Francisco, L.A, Anchorage and Honolulu, just to name a few of the included cities. The numbers may not be 100% spot-on for San Francisco real estate but the information is definitely worth a look. (Full disclosure: There is a downloadable report for San Francisco and it required submitting more information than we felt was necessary so we skipped it.) One chart in the Trends report is interesting because it shows that the Pacific region has the highest overall percentage of costs recouped – not really surprising given higher construction costs and higher home sales prices in this part of the country.  And then there is this category, “Number of Projects with ROI Above an Historical Average of 86.7%”, in which San Francisco has a strong showing:

Cities with high ROI Projects

Even in a seller’s market like the one we are seeing in San Francisco,  present your home in the best possible light and a strong sales price will be your reward.

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