ROI – What Does That Mean?
When you are discussing home improvements and where to get the most bang for your buck ROI always comes up. Definition is return on investment. But what does that really mean to you, the homeowner?
A great report that is put out for consumers each year is “Cost Vs Value”. It breaks down home improvement projects by region and area of your city and compares what a project will cost you and what an expected return on investment percentage is when you sell.
See the Cost vs Value for 2016 here:
What are some home improvement projects that typically get that BEST ROI?
Surprisingly siding was right up in the #1 spot. Kind of goes with the idea that if the house doesn’t have curb appeal, potential buyers will drive right on by……
The next couple were as expected, kitchen and bath remodels. The best ROI is more of a face lift then a full gut job. A face-lift remodel on a bathroom is usually around $15,000 while a full gut remodel is $30-$50,000. In the hottest housing markets a remodel of a bath or kitchen can reap over 100% ROI if newly done.
Things to think about before you start bath crashing?
- Look at the value of your home and neighborhood before you spend $10,000 on an appliance in a $200,000 home
- Stick with traditional- natural wood cabinets, stone/tile or wood floors, a solid surface countertop.
- Low maintenance products to clean with a lifetime warranty
- Commercial “look” –not grade –appliances
- If no room for tub and shower, go with a large walk-in shower
If you can’t decide between remodeling your one bath in your home, or adding a 2nd, add the 2nd bath if you have more than a 3 bedroom home. Better ROI and increased the price of most homes by 10%.
Best advice is if you are not planning on moving anytime soon-spend your money remodeling in a way that makes you love the home you are in!