Will a Home Improvement Project Pay Off at Resale?

September 20, 2014

home renovation projectAre you considering a home improvement project with the hopes that you’ll be able to make a little profit on it come resale time? Whether or not you’ll be able to upgrade those kitchen countertops or put new tile in the bathroom and make your money back on it at resale depends a lot on where you live.

The Equifax Finance blog explains how and why in their recent article, “

The Best ROI Home Improvements Based on Where You Live.”

The article is based on a nationwide study done by Remodeling magazine and Realtor magazine, the “2014 Cost vs. Value Report,” which looked at the costs of more than 30 common home improvement projects and makes projections on how much of their investment owners would likely recover when they sell their improved homes.

The five projects that yielded the highest return on investment (ROI) for the U.S. as a whole were: entry door replacement, deck addition, attic bedroom addition, garage door replacement and minor kitchen remodel. From a national perspective, only the entry door replacement would yield any return at resale (and a modest return at that, 113% could expect to be recovered upon resale). But like everything in real estate, it’s location, location, location.

Different areas in the U.S. can expect different results. For example, in San Francisco, homeowners could expect 174.2% of the cost of the entry door replacement to be recovered upon resale. Of course that will not be the case for every market. Homeowners must carefully consider the costs and likely returns in their local market on each home improvement project. The “Cost vs. Value Report” can be a useful tool in this process.

Many projects will require a professional, skilled contractor, but for those projects that you can do yourself, the article recommends doing so to save money and increase your profit potential, provided you have the time and patience to get it done.

Read the full article, which includes some interesting charts comparing returns in different parts of the country, on the Equifax Finance blog. While you’re there, you can also find many more helpful articles on real estate, investing, saving money, taxes, insurance, credit, identity theft protection and much more.

About The Author

Read All Stories By admin

Leave a Comment