What’s My ROI?
This time of year you might be thinking about which home improvements seem like a good idea for 2015. We all have the list swimming around in our brains. That little voice that says, “I love this house, I just wish we had a bigger master bath or I wish the basement was finished.” I wish, I wish, I wish.
As with any housing decision, determining needs vs. wants is really important, but when remodeling you have an extra question. What is the return on investment for this project? Sure you’ll enjoy it in the present, but what does it mean for future resale. Most Americans move every eight or nine years so even if moving isn’t on your mind right now, chances are you will move at some point therefore you should consider the best improvement investments.
REALTORS® intuitively know that kitchens, baths and basement remodels are great investments. Remodeling.com also has this cool widget that enables you to drill down to city. We took a look at Indy and here’s what we found.
According to the Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com), a steel entry door replacement tops the charts for return coming in at 105% of cost recouped. Garage door replacement is up there too at 86%. In the more “fun” category, an attic bedroom remodel will bring 85% back and a minor kitchen remodel will bring 76% in returned investment.
Your REALTOR® will tell you this is good research, but you should also consider the enjoyment you will gain from your completed project and not just the numbers. Also, when it comes to the intrinsic value of some updates, there are certain areas of the home that win every time. Local REALTORS® will share their insights on those later this month.
Wondering what comes in pretty low on the list from the Remodeling 2014 Cost vs. Value Report? A home office remodel rings in at 52%. Maybe that’s another lesson for 2015, all work and no play doesn’t necessarily pay. Happy remodeling!