How much should you spend on renovating your home?

renovate your homeWhether you are a new homeowner, a seller preparing your home for the market, or an investor remodeling quick flips, where should you invest your money for the greatest return? Surprisingly, many renovations will not yield as much value as the cost of the improvement.  For example, in the Sarasota, FL area, adding a pool costs approximately $30,000 or more, but will only add an estimated $10-$15,000 in value. Yet, if you plan to renovate your home, there are improvements that will yield you more bang for your buck.
When selling a home, one of the biggest returns on your investment can be found in a new front door, but keep in mind that it has to be a door that compliments the style of the home. In some cases, a freshly painted door will do the job. As a note to sellers, you only get one chance for a first impression, and in this case it starts at the front door.  An attractive exterior will entice those drive-bys buyers to want to see more.
When considering renovating your home, you must also take into account how long you plan on staying in the home. The value to you as a homeowner matters as well, but as a rule of thumb, if you plan on living in it for an extended period of time, then it is wise to limit your investment to 30% or less of the home’s value. If you are a seller preparing your home for the market, keep the investment to 15-20% of the homes value.
The saying, “kitchens and baths sell a home” still holds true when selling a home for profit, and brings a significant payoff at resale time. An important renovation tip to consider when you are doing home improvements for resale is to keep your renovation within the style of the home.  For example, if you have an historic Spanish home, do not use a sleek modern kitchen. Not only will it not flow with the rest of the home, but will take away from the home’s value.
Once you come up with a renovation budget, make sure you stay within your budget.  A verbal commitment that you will not exceed your renovation budget is not merely enough– you need to write it down. Better yet, do as a contractor would do and prepare a scope of work.
The 2017 Cost vs.Value Report recently distributed some very helpful information which provides valuable insight as to where you should be spending your renovation money. These mid-range remodeling projects will offer the highest returns on your investment. These numbers provided in this post are specific to the Sarasota, FL area. To see the current return on your investment values for your area of the country, I highly recommend visiting the Remodeling Magazines  2017 Cost Vs. Value Report
DOWNLOAD THE SARASOTA 2017 COST VS VALUE REPORT NOW!

 

Renovate Your Home, Yet Know Where to Spend Your Money

Entry door replacement  (steel)                            

Estimated Cost: $1363

Resale Value: $1457

Return on Investment:  106.9%

 

Wood deck addition  

Estimated Cost: $9515

Resale Value: $7911

Return on Investment:  83.1%

 

Garage door replacement 

Estimated Cost: $1633

Resale Value: $1700

Return on Investment:  104.1%

 

Minor kitchen remodel

Estimated Cost: $19,709

Resale Value: $18,763

Return on Investment:  95.2%

 

Major kitchen remodel

Estimated Cost: $58,303

Resale Value: $13,517

Return on Investment:  72.6%

 

Window replacement (vinyl) 

Estimated Cost: $14,840

Resale Value: $13,694

Return on Investment:  92.3%

 

Bathroom remodel

Estimated Cost: $16,767

Resale Value: $13,180

Return on Investment: $78.6%

 

Home Renovations Estimate Calculator

Kukun, a home renovation marketplace, has created a helpful tool which calculates home remodeling costs and ROI (return on investment) instantly based on the area zip code. Their home renovation cost estimator is one of a kind and is quite popular among homeowners. Give it a try!

About Gina Ursini

 Real Estate Agent Gina UrsiniGina Ursini makes up one half of Ursini & Company. As a residential real estate expert, Gina specializes in home buying, home selling, new home construction, and custom exterior and interior remodeling. Her comprehensive background encompassing design and home staging provides her clientele with a broader perspective for their residential real estate needs.

Mark Ursini makes up the other half of Ursini & Company. He is Founder and President of Brista Homes, with over 30 years of experience in custom home building and remodeling. Mark was awarded Best of Houzz 2016 for superior customer service. Through his eye for design and inspired renovations, Mark assists Gina’s clients in building a home, renovating a home, or preparing a home for the market.

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Remodeling: Where to Spend Your Money
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Remodeling: Where to Spend Your Money
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See up-to-date renovation cost vs. returns for your area. The results might surprise you!
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Ursini Real Estate Agent
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