This has been a great season in the real estate business; I've had the honor of working with some great first-time home buyers and my son Justin has joined my real estate team! We'll talk about Justin more another day (you really should have a proper introduction to him :)) but today we are going to focus on things that buyers, like these first-time buyers, can do to improve their house but get the biggest bang for their buck.
A great resource for home buyers is Remodeling magazine's Cost vs. Value report. Before deciding on home renovations make sure you check out how much you'll recoup from your investment. The five smartest improvements you can make to your space (if you are in the Sacramento area) are based on the return on investment (ROI):
If you replacing your entry door with a new steel door you will actually make money off of this investment... 113% of your cost is predicted to be recouped. Consider replacing your current door with one that's more energy-efficient like THIS ONE from Home Depot (it's $550!).
A wood deck addition has an ROI of 109%. I'd believe this based off the amount of satisfaction buyers get when seeing a well presented outdoor living space, especially in an area like Sacramento where buyers are able to be outside enjoying the space for more of the year than they are in many other parts of the country. For example, in Syracuse, NY area where I'm originally from the ROI on a wood deck is only 80%.
You'll recover 102% of the cost you put into a basement remodel or a attic bedroom. Why do you think this is? It's because this remodel (if the spaces were unfinished before) is actually adding square footage to your home. Unfinished areas, like attics and basements, are not considered when calculating the livable square footage to your property.
via (where you can see 18 amazing attic remodels!)
Embarking on a minor, and well done, kitchen remodel with net you a profit with 104% ROI. This data is considering around $20,000 put into the remodel (read: don't splurge on Viking appliances if you want 104% back! :)) This couple from the blog Bower Power bought a foreclosure and switched out the appliances, back splash, lighting and painted their cabinets and it made such a difference in attaining their light and bright kitchen (did you know it's easier to sell a house with white cabinets because they are almost universally appealing?).
Before:
After:
Replacing your windows with either wood or vinyl replacements will allow a 100 - 102% return with this investment.
I hope this list helped you narrow down some priorities or dreams for renovating or improving your home in the coming years!
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