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Best Returns on Investment for Home Projects

February 2, 2017

I recently shared information on some upcoming Home & Garden shows which can provide wonderful inspiration for updating your home. If you are planning to sell, another important consideration to any updates you make is your Return on Investment, or ROI. Each year, Remodeling.com releases an annual study, Cost vs.Value, for home improvement projects.

This year’s report doesn’t show much change in the overall values on investments, primarily due to only slight changes in current costs related to home and landscaping updates. While the changes may be small, the paybacks can be large. The study included 29 projects with cost vs value data compiled from 99 markets across the country. The report provides insights not only on a national level, but also by region and in major city markets.

The Pacific Region, with its ongoing strong real estate market, has the highest average ROI for all projects combined, at a 78.2% average return, compared to 64.3% for the nation. Of the 29 projects reviewed, 10 of them are bringing back an average of 90% or more for recouped costs along the west coast, as opposed to just 2 projects nation-wide. These differences are a direct reflection of the ongoing demand for property in this part of the country.

bedroom-1597103_640Looking into the specifics for the Sacramento metro area, the projects which bring the highest ROI are similar to the national top five, but with different results. For mid-range homes, the top projects include minor changes which can make big impacts. For luxury homes, the top projects are more centered around desirable features and amenities, and on the whole, are more grand in scope.

The top five mid-range home projects for this area include:

  • Steel Entry Doors – 169.2% ROI
  • Manufactured Stone Veneer exteriors – 111.4% ROI
  • Fiberglass Attic Insulation – 104.7% ROI
  • Fiberglass Entry Doors – 85.7% ROI
  • Minor Kitchen Remodels – 82.3% ROI

 

The top five luxury home projects for this area include:

  • Vinyl Window Replacements – 95.3% ROI
  • Garage Door Replacements – 85.0% ROI
  • Wood Window Replacements – 82.8% ROI
  • Fiberglass Grand Entry Doors – 75.6% ROI
  • Master Suite Additions – 54.3% ROI

If you are planning to sell, investing in some key home upgrades can add value to your home; getting a positive Return on your Investment can add even more. When you are ready to sell your property, you want a Realtor® who understands the latest trends and the local real estate market, with your interests in mind. My team and I are ready to help you through the entire process. Our goal is to make your experience both easy and pleasurable. Contact us today at (925) 634-7820, or by email at realestate@cecily.com.

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