As the economy continues to recover, few sectors are fluctuating more rapidly than real estate. What was a good investment a few years back can actually lose you money in today’s market. Staying ahead of the trends isn’t just a matter of knowing what buyers value nationwide. You need knowledge of developments in your neck of the woods. The popularity of remodelling projects often depends on the region.
Remodeling magazine’s annual Cost vs. Value Report for 2014 showed that some traditional remodelling projects are not as cost effective as they once were before the recession hit. Determine the cost of your remodel versus the value added to your property before you splurge on that dream bathroom.
Here are 10 of the top projects in the Dallas area currently returning 83 percent or higher on the initial investment. They are listed with the best ROI (101%) first to the lowest ROI (83%) last.
- A New Front Door (steel): Replacing your front door is the single most cost effective project you can tackle. With an ROI of 101%, it’s the top-ranking home improvement.Old exterior doors can be a big energy suck. Replace your door and upgrade the look of your home, enhance energy efficiency, and do it all without breaking the bank.
- Minor Kitchen Remodel: Kitchens are important to buyers and a minor remodel can give you a return of 95%. Buyers tend to overestimate the costs involved in updating a kitchen. A minor kitchen remodel – new cabinet doors, appliances, countertops, sink, faucet, paint and hardware – comes in under $ 19,000 nationwide.
- Basement Remodel: Homeowners who added more living space saw the highest ROI for their home improvements at resale. A cost-effective way to increase living space within the footprint of your existing home is by upgrading your basement, a 92% ROI.
- Deck Addition (wood): Like the basement remodel, decks are a great way to add living space without impacting on the footprint of your home. Here in Texas, decks appeal to our ever-increasing love of outdoor living, a trend that looks to last for the conceivable future. This is a fantastic means of expanding living space at an average cost of $8 to $30 per sq. ft. with an 89.0% return on investment.
- Siding Replacement (fiber-cement): With an average return of 88%, replacing older siding gives a better financial return than more involved remodeling projects. Siding has a huge impact on curb appeal and clean, well-cared-for siding sends the clear signal that the property has been masterfully maintained.
- Backup Power Generators: Backup generators are back in favor – they have strong significance for the Texas market; possibly due to weather conditions the US has experienced lately. Currently the return on investment is 86%.
- Bathroom Remodel: Updating your bathroom is ordinarily a good investment, with an ROI of 85%. Experts suggest spending no more that 15% of the property value for a bathroom upgrade.
- Major Kitchen Remodel: The word is updated kitchens bring a significant payoff at resale. The report found a major kitchen remodel yields a return averaging an 84% ROI. But it’s important to do the right remodel; generally look to spend about 25% of home value for a new kitchen.
- Garage Door Replacement: Tied with number ten, a garage door replacement is a low cost project that’s done if it’s needed. But it fulfils two purposes at once, adding function as well as curb appeal for an average ROI of 83%.
- Attic Bedroom: Attic conversions are always a popular way of adding living space within the homes existing footprint. By adding an attic bedroom in Texas you can expect a return of investment of 83%.
Working within your existing footprint to gain more living space to your home is always a good idea. Remodelling projects that bump up the visual appeal also add value to your property. Plan wisely and research your market before making a decision.