Your home is most likely your biggest asset. To get the most from this major investment, keep your property in good condition. Keeping your property in top condition may involve a renovation project from time to time. Not all updates are created equal. Certain renovation projects bring stronger Return on Investments (ROI) than others.
How do you know which home renovation project is worth your time and money?
You’ll see the results of any ROI when it’s time to sell your home. Remodeling Magazine publishes a yearly resource for anyone planning a home renovation or update.
How much can you gain from a home renovation?
The Remodeling 2019 Cost vs Value Report *, provides national and local data reviews of key remodeling projects, and how much homeowners can potentially gain based on what current homebuyers are looking for. While kitchens and bathrooms are thought to be the best rooms to remodel when selling your home, this isn’t always the case. Smaller projects can have greater impact, especially when it comes to ROI.
Let’s take a look at some home renovation data provided for San Jose, which is one of the 136 major metropolitan areas covered in the review. In this year’s Cost vs Value report, the top 5 home remodel projects for San Jose include:
- Manufactured Stone Veneer: 131.4% ROI
- Garage Door Replacement: 93.2% ROI
- Midrange, Minor Kitchen Remodel: 90.4% ROI
- Vinyl Window Replacement: 85.0% ROI
- Wood Window Replacement: 81.6% ROI
Interpreting the data
So, what does this information tell us? First, take note that four of the top five projects for strong ROI involve exterior related features. Curb appeal is still a major factor when it comes to attracting a buyer, and with top quality features such as stone veneers, a new, stylish garage door and updated windows, you’ll be more likely to get to your money’s worth. There’s an aesthetic value along with a value on energy efficiency echoed in these top home updates.
For our area, it’s holding true that a kitchen remodel can bring a strong ROI, but if you want to get the most out of your renovation, don’t go too far. A smaller remodel, such as updating appliances, or replacing counters and cabinets, may provide an economical update, while still giving you a handsome ROI.
Make a smart plan for your home renovation
As you plan your home renovation, balance long-term vision with current trends. Exterior updates such as stone veneers, new garage doors and windows have been at the top of regional and city lists for a number of years now, according to the Cost vs Value report, and it looks as though the desire for these features is expected to remain.
If your home renovation needs don’t fall into the top projects, you can still get an idea of how well your investment will likely hold. This is valuable information for prioritizing home renovation projects.
Let’s talk about it
When it’s time to sell or buy your home, rely on the experience of a local Realtor®. Contact me, Stephen Theard, at (408) 472-0817 and let’s talk about your next chapter.
* © 2019 Hanley Wood, LLC. Complete data from the Remodeling 2019 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
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