EXAMPLES OF IMPROVEMENTS THAT PAID OFF
“If the roof is leaking, buyers won’t get beyond that.” That is a piece of truth that sellers simply cannot get around. No matter what upgrades or improvements have been made to make a house more appealing, and thus costlier, if the fundamental systems (furnace, AC, plumbing, electric, foundation, and roof) are in bad shape, so is the chance of a sale. There are, though, examples of home improvements that you can almost bank on returning a good ROI on your investment outlays. According to Remodeling magazine, you are less likely to recoup your investment in a major kitchen or bathroom remodel than you are to get back what you spend on basic home maintenance such as new siding. Siding replacement recouped 92.8% of its cost, according to the study. The only home improvement likely to return more at resale was a minor (roughly $15,000) kitchen remodel, which returned 92.9%. Replacing roofs and windows was also high on the list, returning 80% or more at resale. In the hottest housing markets, investing in a kitchen or bath remodel is a wise investment, often returning more than 100% of the cost. In Baltimore, for instance, a $9,400-bathroom remodel recouped 182% of its cost at resale, according to Remodeling’s 2004 study. The markets in Washington, D.C., Minneapolis, Chicago, Atlanta, San Francisco, and San Diego also offered triple-digit returns on a bathroom remodel. Minor kitchen remodels (average cost: $15,273) also provided returns of more than 100% in cities including Providence, R.I., Miami, New Orleans and, of course, San Diego, where a $17,928 investment netted $27,000 on resale.
Don’t spend money remodeling the bathroom if it’s the only one
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