Across the board, you’re typically going to get back about 64% of what you invest into renovations. This means that for every dollar you spend, you are going to average about 64 cents per dollar back in your pocket for all renovations.
Renovating your kitchen, master bedroom, and bathroom are three areas which can add a lot of value to your home. When you decide to do a renovation, you will need to make sure that you have looked at the values in your neighborhood. You also want to do renovations which are appealing and that do not outgrow your neighborhood. Otherwise, you will price yourself out and never get the money back.
Decks, meanwhile, don’t add a lot of value to your home. You usually only get about 10 to 20 cents back for every dollar spent on a deck. Replacing windows and roofs also don’t add much value. While buyers love to see new windows in the homes that were built in the 70s and 80s, they don’t necessarily love to pay more for them.
Sellers often think that if you update something that costs $15,000, it adds the same amount of value to the price point. This is, unfortunately, not how it works since buyers expect many things to already be functioning if they are going to buy the home.
Also, keep in mind that if you’re doing some of these renovations, the cost of the product is usually around 50% of the whole project. You can expect to pay an additional 50% in labor costs, so make sure that it makes sense when you decide to do your updates.
If you have any doubts, please feel free to give me a call. We can do a pre-walkthrough of your home with you and provide advice on where you can get your best return. We look forward to hearing from you soon.
