The holidays have passed and spring is just around the corner, but the de-clutter-bug has laid roots in your New Year’s Resolutions. Once you get started, you can’t be stopped, and now you’re thinking about home improvement projects beyond dusting, window washing and mopping. But which remodels or improvements are expected to make the biggest return on your investment? The answer may be not the flashy new stove or luxury jetted tub you’ve been eyeing, but rather the renovations of the less exciting persuasions.
To estimate which projects would specifically return on the investment if sold in 2016, experts weighed the average cost of a project with real estate agent’s estimates on how it would increase a home’s value in several different markets. The highest return on investments isn’t very glamorous: additional attic insulation has the highest return at 116%. If you’re about to put your home on the market, adding more insulation in the attic will not only get all of your money returned, but is worth even more than the improvement’s cost.
Other high-return investments include upgrading the garage doors, adding stones or stone veneer to the exterior of the home, and upgrading to a steel entry door. Many of these items are either maintenance or curb appeal related, further proof that first home impressions are worth their weight in gold. A well maintained home speaks volumes, and puts buyers more at ease with the quality of investment they would be making by purchasing your home.
Unfortunately, the more enjoyable home projects like designing new spaces or remodeling bathrooms and kitchens, is on the low end of the return-on-investment spectrum. Adding a bathroom will only return 56% of your investment. Whether standard or luxury, bathroom additions and remodels rank at the bottom of the return-on-investment scale. Also at the bottom? Master suite additions and remodels and decks.
The return on investment potential should primarily be considered when you’re selling real estate in the same year as the project. If you plan on staying in your home for longer, you can also take into account the enjoyment you’ll reap from the project. For instance, anyone who has had to wait their turn for a bathroom can understandably be more willing to add a bathroom than those who live alone. Make choices that make sense for your annual plans, budget, and circumstances.
Whether you’re in the market to buy or sell, the Terrell Team is made up of area experts that can guide you through both processes. From distressed real estate to a dream luxury cabin, there’s something for everyone in the Smoky Mountains. With listings in Sevierville, Pigeon Forge and Gatlinburg, the Terrell Team can guide you to your ideal home.