Getting the Most ROI on Home Renovations
A question you should always ask yourself when you decide to list your home for sale is, "how can I add value to increase my list price?" and make my house appeal to a bigger audience?". Adding value through cosmetic updates to your house can significantly increase your overall list price in many ways. While some projects are major and others are minor, it's important for the seller to know what's a realistic outcome before putting money into any type of renovation. The idea is to make your house appeal to the largest audience possible!
Fortunately, there is data available to show you what kind of return you can expect on your updates. Remodeling Magazine recently published its annual Cost vs. Value Report, which highlights various types of remodeling costs on a national and local market level. The 2019 report shows that the top five repair types by ROI (all recouping over 100% of investment) in Los Angeles are:
Manufactured Stone Veneer
Garage Door Replacement
Grand Entrance (Fiberglass)
Entry Door Replacement (Steel)
Minor Kitchen Remodel (Midrange)
Looking at the report, the majority of the ROI appears to be in curb appeal/exterior upgrades. As materials costs have gone up since last year, so has inflation, which is nearing 2%. It is normal to see a rise in costs with a good economy, whereas another factor affecting costs is available labor in a given market to complete these construction jobs.
The Cost vs. Value report explains the scope of each project, the average local market cost, and the real returns for similar projects in Los Angeles. For example, replacing all windows in your home with vinyl style would cost you roughly $19,153. A seller can expect to make a return of $19,658 in return.
Please reach out to me with any questions, including how to obtain your own copy of this report, which I am happy to send back to you via email. I would love to discuss the many ways we can add real value to your home before listing. Thank you for reading!