Home improvement projects are a great way to increase your home’s resale value. They can enhance your home’s appearance, increase functionality, and even improve energy efficiency. But which upgrades have the greatest impact on your home’s resale value?
One sure way to increase your home’s value is to enlarge its footprint. The National Association of Realtors has estimated that every 1,000 square feet of living space added to your home adds approximately 3.3% to the structure’s value. For example, adding 1,000 square feet to a $200,000 home can boost the property’s value by nearly $7,000. A home addition, however, is a major undertaking that can get messy. Unexpected complications and changes in material or contractor costs can result in budget overruns and delays. However, the good news is that once an addition is successfully completed, it can have a very positive impact on your home resale value.
It has been estimated that 40% of structural problems result from roofing issues. When water enters a structure, it can quickly become destructive. Leaks, combined with annual freeze-and-thaw cycles can undermine the structural integrity of the structure. Replacement of rotted beams, brick re-pointing, plaster repair, and repainting are just a few problems directly linked to water damage from a faulty roof. As for return on investment (ROI), you are likely to recoup about two-thirds of your investment, especially if you keep materials and cost within the midrange. A state-of-the-art roof replacement is awesome, but the return actually peaks at midrange—so going “top of the line” on a new roof likely won’t increase your ROI, and may even reduce it.
1. Upscale Garage Door Replacement (98.3% recouped cost)
2. Manufactured Stone Veneer Exterior (97.1% recouped cost)
3. Upscale Window Replacement (94.3% recouped cost)
4. Steel Entryway Door Replacement (91.3% recouped cost)
5. Midrange Deck Addition (82.8% recouped cost)
6. Minor Kitchen Remodel (81.1% recouped cost)
7. Siding Replacement (76.1% recouped cost)
8. Midrange Bathroom Remodel (70.1% recouped cost)
You may notice that when it comes to kitchen and bath remodeling, “minor” and “midrange” projects offer a greater ROI than more upscale remodels. Homebuyers prize functionality, convenience, and a clean appearance, but are less willing to pay a premium for extras like brass fixtures, slate floors, or imported Italian tile. So if you’re remodeling your kitchen or bath to boost your home’s overall resale value, you my want to keep the renovations (and costs) within the midrange.
Exterior improvements that enhance your home’s curb appeal are likely to also yield the greatest ROI. Manufactured stone veneer, for example, scored very highly on Remodeling Magazine’s list for ROI, with siding replacement scoring well but slightly lower. Energy savers like upscale window replacements and security and safety features like a steel front entryway are also appealing to homebuyers and thus generate a robust ROI.At Home Tax Savings, we understand the importance of adding value to your home. We also know that some home improvements can result in a reassessment of your property and a subsequent increase in your property taxes. Check us today and learn how Home Tax Savings can help you appeal a property tax assessment that you feel is inaccurate or too high. If we find that an appeal is warranted and would prove beneficial to you, Home Tax Savings can provide the expert guidance, documentation an e-filing tools you need to file your appeal.
HomeTaxSavings.com is wholly owned by Assessment Solutions, LLC and was established in 2016 as the nation’s first fully automated and integrated real estate assessment review and appeal system. The principals of HomeTaxSavings.com have worked in the real estate and IT world for over 100 years. Founders Keith McIntosh, Stuart Smith, Rachel Brown and Mandeep Sandhu possess a vast knowledge of the industry with many years of experience. The group is gaining wide popularity having covered The District of Columbia, Maryland, Virginia, Texas, Colorado, Georgia, Florida, California and Washington.
Disclaimer: This article is for informational and educational purposes only. The HomeTaxSavings.com website is not a market value appraisal, rather it is an assessment tool.