renovations

Should I Renovate Before Selling?Avoid These Projects With Terrible ROI

Celebrities who perform dramatic home makeovers on TV and the average homeowner on Main Street live in two very different worlds. One has the budget of a reality show to foot the bill for materials and labor, and the other has whatever’s in their bank account and tight profit margins.

Investing big bucks in fixing everything isn’t the smart move if you want to see the highest return on your investment (ROI). Let’s take a look at some of the most popular pricey projects that have the lowest ROI and the wiser, low-cost upgrades that offer a bigger bang for your buck.

Check out a summary of the results below in Homelight’s custom infographic:

Source: homelight

Cleaning and Decluttering Is Your best Project To Increase Your Home Value

You’re better off spending less money on smaller scale projects than trying to recoup your spend on bigger renovations base on the HomeLight survey conducted in the first and second quarter of 2019.

Source: homelight

1. DON’T: Drop big bucks on a full kitchen renovation

According to HomeAdvisor website, A kitchen remodel averages in Canada at $21,999 with the typical range being $12,560 to $33,282.

According to data from HomeLight, top real estate professionals estimate that on the average smaller-scale $23,140 kitchen upgrade, sellers would recoup $23,122 at resale, for a -0.08% ROI. So… better, but you still don’t break even.

2. DON’T: Completely renovate the bathroom

As arguably the grungiest place in the house, on the one hand completely remodeling the bathroom makes sense. And at an average cost of $9,627 with the typical range being $5,923 to $14,010, it’s cheaper than redoing the kitchen.

Unfortunately, while it’s technically cheaper, the ROI for a bathroom model is worse. HomeLight’s survey data indicates that if you spent smaller-scale $10,284 bathroom upgrade, you’d get back $10,180, for a -1.00 % ROI.

Spend less on renovations to make more money back

There’s no need to spend big bucks on one major renovation when a handful of minor upgrades throughout the home will actually net you a bigger ROI.

“A good agent will not let a seller spend $20,000 to get $20,000 back, because that doesn’t make any sense. You’re better off just selling the house as-is,” says Gaddis.  “The best agents work to help clients get two to three dollars back for every dollar spent. And those agents won’t be guessing. When you sell a lot of houses, you get pretty good at the science behind ROI.”

So when you’re prepping your home for sale, pick up the phone and consult me before you spend a single penny on home improvements.

The 5 most popular renovations are more costly than you could think

Make sure you understand the real price before you begin your next large project.

Home Ownership is more expensive than the original down payment. You are most probably going to need to do some kind of refurbishment at some stage.

while sometimes renovations are factored into the price of purchasing a home, sometimes homeowners choose to do the projects later down the highway. So what precisely is costing some of the most famous remodels?

Clever, a platform intended to link agents, buyers, and vendors of real estate, recently surveyed 1,000 homeowners about post-purchase home expenses. The findings showed not only what individuals were spending on renovating, but also how much they believed expenditure would cost in advance. And rarely did the two rates align.

The study questioned homeowners what renovations they were planning to undertake over the next five years, as well as what the price would be anticipated. The five most popular planned renovations were:

  1. Landscaping
  2. Bathroom Remodel
  3. New flooring
  4. Kitchen Remodel
  5. New patio or deck

The homeowners were conscious of which renovations would cost the most, and indeed relatively accurate. They estimated kitchen remodeling would be the most expensive projects, followed by the new deck, then the remodeling of the bathroom.

But when it came to the real price of those renovations, the homeowners were far away.

For example, homeowners estimated new flooring costs at $1,985, while the actual reported cost is $2,863, according to HomeAdvisor.

 

 

 

 

 

Estimates in kitchen and bathroom renovations were even more incorrect. The homeowners estimated the cost of redoing their bathroom at $2,406, but the true cost report from HomeAdvisor reveals that it is closer to $9,723.

As for kitchen renovations, homeowners properly thought that at an estimated $4,773 it would be the most expensive of projects. The real average kitchen refurbishment price recorded? A gigantic $22,134—about a fresh Mini Cooper’s price.

The report serves as a reminder that it may cost more than you expect your dream kitchen. Be sure to budget wisely as you plan your next renovation so you don’t get stuck with sticker shock.

Source Link : “https://www.bhg.com/news/most-popular-home-renovations-cost/”