Home Buyer

Will Your Remodel Pay Off? The Best (and Worst) Ways to Spend Your Budget

 

Most new homeowners have something about their property that they want to change. And as family needs and design trends shift over time, many will eventually choose to remodel. Some homeowners make updates to their property before listing it to maximize their potential sales revenue.

 

Whatever your reasons are for taking on a home improvement project, it’s wise to consider how the money you invest will impact your home’s value.

 

We’ve taken a look at six popular home renovations and identified those that—on average—have the best and worst returns on investment. So before you lift a hammer or hire a contractor, take a look at this list and see if your remodeling efforts will reward you when it comes time to sell.

 

 

RENOVATIONS THAT PAY OFF

 

These three common home improvement projects not only add function and style to your home, but they also offer a strong return on investment. Making strategic upgrades to your property will help you increase its value over time.

 

Minor Kitchen Remodel

The kitchen is often referred to as the “heart of the home,” and for good reason. Traditionally used for preparing food, it has morphed into so much more. Many of us now eat our family meals in the kitchen, it serves as a favorite spot for homework and kids’ art projects, and it’s the place guests tend to gather when we host events.

 

Because we spend so much time in our kitchens, it’s natural that we will eventually want to make updates and upgrades to better suit our needs and changing style preferences.

 

Luckily, a minor kitchen remodel is one of the best investments you can make in your home. According to Remodeling Magazine’s annual Cost vs. Value Report, it has an average 80.5% return on investment.1

 

The key to making a kitchen remodel pay off is to keep it modest in scale. Spend too much on custom or high-end selections, and you are less likely to recoup your investment. Instead, make an effort to keep your existing layout if it works for you and your family. Paint or reface cabinets instead of replacing them. Update countertops with low-maintenance quartz and swap out old light fixtures with modern alternatives. Replace outdated appliances with energy-efficient models. The average cost for a minor kitchen remodel is $22,500, and it’s likely to recoup more than $18,000 at resale.1

 

Wood Deck Addition

A deck addition is a popular way to extend and enhance the use of your outdoor space. It’s the perfect spot for grilling, dining alfresco, and entertaining. In fact, 81% of surveyed homeowners said they have a greater desire to be home since completing a deck addition.2

 

For a 16 x 20-foot wood deck, you can expect to spend around $13,000. Fortunately, the money you invest offers an average return of 76%.1

 

Decks made of composite material are a popular alternative these days, as they don’t require the regular sanding and staining that wood decks need. However, at an average cost of $19,000 for a 16 x 20-foot composite deck, they are significantly more expensive. Plus, the expected return on investment is only 69%.1 Still, if you plan to hire someone to provide regular maintenance to a wood deck, then a composite deck may offer cost savings over time.

 

 

Siding Replacement

Everyone knows good curb appeal is important when selling your home. And while it may not be the most exciting way to spend your remodeling budget, new siding can make a big impression on buyers … and your selling price.

 

Your home’s exterior is one of the first things buyers see when they view your home. It sets the tone for what they are going to see inside. It also gives an impression of how well the property has been maintained. Worn, peeling, or rotted siding can be a major red flag for buyers.

 

Replacing 1,250 square feet of siding costs around $16,000 and will net you an average of 76% at resale.1

 

For an even greater impact, consider replacing a portion of your siding with manufactured stone veneer. It can have a dramatic effect on the visual appeal of your home. A 300 square foot area will run you around $8,900, but you can expect to see a nearly 95% return when it comes time to sell.1

 

 

RENOVATIONS WITH WEAK RETURNS

 

These three popular remodeling projects are homeowner favorites. However, don’t expect to see a high rate of return at resale. Instead, consider them an investment in your current quality of life. Just make sure you’ll be living in the home long enough to make them worthwhile.

 

Major Kitchen Remodel

If there’s one room the majority of homeowners dream about making over, it’s their kitchen. From custom cabinetry to high-end appliances, the possibilities are endless. But those dreams can come at a cost.

 

An upscale kitchen remodel with high-end cabinetry and countertops, commercial-grade appliances, and designer features can cost upwards of $130,000. And unfortunately, you’ll only get back around 60% at resale. Even a mid-range kitchen remodel that includes new semi-custom wood cabinets, laminate countertops, and energy-efficient appliances could run you around $66,000 and net you a mere 62% at resale.1

 

Of course, an outdated or non-functional kitchen could turn buyers off from your home completely …  and keep you from enjoying it yourself! So if your kitchen needs a major remodel, you shouldn’t necessarily scrap your plans. Just go in with the realization that you may only get back a fraction of what you invest. Then you can decide which upgrades are worth the splurge.

 

In-ground Pool         

Few additions deliver more entertainment or enjoyment than an in-ground pool. It brings families and friends together, provides a break from the summer heat, and offers a fun and convenient way to stay fit. Plus, you’ll be the envy of your neighbors! But before you dive into a pool addition, consider whether the benefits outweigh the (substantial) costs.

 

The average expense to install a standard 18 x 36-foot in-ground pool is $57,500. And the estimated return at resale is only or 43%.2 In addition to the installation cost, plan to spend money each year on maintenance, repairs, and additional insurance.

 

However, 92% of surveyed homeowners said they “have a greater desire to be home” since installing a pool, and 83% have “an increased sense of enjoyment when they are at home.” For you and your family, the perks of a pool may be priceless.2

 

Master Suite Addition

If you own a house built before the 1980s, there’s a good chance it lacks a master suite, which is a feature that has become commonplace in most newly constructed homes.3

 

Master bedrooms have evolved from a simple place to sleep into a homeowner’s retreat—often featuring a sitting area, his-and-hers walk-in closets, and an attached bathroom with double vanities, a soaking tub, and a walk-in shower.

 

And master suite additions have become increasingly popular—both in homes that lack one as well as those with aging owners who can no longer accommodate stairs to an upper-level bedroom.

 

But what’s the typical return at resale? Unfortunately, a master suite addition offers one of the lowest returns of any remodeling project. With a median cost of $125,000, most sellers will only recoup around 52% of their investment. Nevertheless, in a survey of homeowners, the majority were satisfied with their decision to add a master suite, giving it a “Joy Score” of 10 out of 10.4

 

 

WEIGHING COST VS. BENEFIT

 

It’s always wise to enter into a remodeling project with knowledge of how it will impact your home’s value. In most cases, upscale or highly-customized upgrades are less likely to offer a high rate of return. That said, home renovations that improve your quality of life and enhance your enjoyment may be worthwhile no matter the cost.

 

 

GET A CUSTOMIZED ANALYSIS OF YOUR PROJECT FROM FARRELLY REALTY GROUP

 

We’ve been talking averages. But the truth is, the actual return you can expect on a home improvement project will vary depending on your particular home and neighborhood. If you have plans to remodel, call or send us the details. We’d be happy to conduct a free analysis to determine how the renovations will impact the value of your home or put you in touch with our many vendors to help tackle your upcoming projects! Call us at (978)664-3700.

 

 

Sources:

  1. 2019 Cost vs. Value Report -
    https://www.remodeling.hw.net/cost-vs-value/2019/
  2. NAR’ Remodeling Impact Report - https://www.nar.realtor/sites/default/files/documents/2018-05-remodeling-impact-outdoor-features-05-23-2018.pdf
  3. Zillow -
    https://www.zillow.com/blog/evolution-of-the-master-bedroom-48286/
  4. House Logic -
    https://www.houselogic.com/by-room/bedroom-closet/master-suite-addition-return-investment/

A Boutique business in a Box business world!

Personalized service is becoming a rare commodity in 2019.  From my own recent experience, you can travel from coast to coast and be surrounded by people but not interact with a single one.   Automation and artificial intelligence is taking over!  In some situations it makes perfect sense but in the real estate world with your biggest investment on the line you deserve more.  You deserve personal attention not a one size fits all box approach!    You deserve a local market expert!   You deserve a team approach where you are the top priority!  Farrelly Realty Group is just the firm you deserve. Geri Farrelly, the Broker/Owner of Farrelly Realty Group is keeping her firm "Boutique Size" where personalization is the corner stone of the business. Geri and her team believe "Your Roots are Their Foundation".  Check out the recent press on this unique personal approach to real estate.   

 

https://s3.amazonaws.com/files.usmre.com/6172/GERI%20FARRELLY%20(1).pdf

A homeowner's Best Friend ~ The Spring Cleaning Checklist!

*Please click on image for your complimentary printable Spring Cleaning Checklist

The birds are chirping, the flowers are blooming, and the weather is finally beginning to warm. Why? Because springtime is here! and whether you plan to sell this season or simply want to enjoy a clean home, our spring cleaning checklist will help you tackle your most daunting projects. Commit to completing three tasks every day and by the end of the month, your house will shine like brand new.

Spring Cleaning Checklist Part 1: The Preparation

  • Buy your favorite cleaning products: You won’t be excited to embark on your cleaning extravaganza with a five-year-old bottle of windex and half empty bleach. So head to the store and stock up on essentials.
  • Make appointments in advance: Planning to get your carpets professionally cleaned or hardwood floors refinished? Just be sure to schedule your appointments ahead of time as to not interfere with your personal cleaning agenda.
  • Create an upbeat playlist: Spring cleaning should not be liberating for just your home, it should also be a cathartic experience for yourself. Let decluttering feel good! Create a playlist of your favorite songs to keep you motivated and on task.
  • Replace your linens: After months of dark and dreary whether, brighten up your home with fresh linens. Replace heavy curtains, blankets, and comforters with a lightweight alternative and your home will feel cleaner immediately.
  • Throw it away: Haven’t worn it in six months? Haven’t cooked with it for over a year? Get rid of it! Even better, donate it! Take some advice from decluttering expert Marie Kondo and toss away items that no longer “spark joy” in your life.

Spring Cleaning Checklist Part 2: Mistakes To Avoid

  • Failing to plan ahead: We’ve already discussed the importance of having a plan, so just do it. Don’t waste your time flailing from one project to the next, completing only half of each one. Be specific. Plan out which rooms you’re going to clean, on which day and in which order. (Pro Tip: Tackle the hardest rooms first)
  • Avoiding the deep clean: In the fashion of true spring cleaning, you’re going to have to get your hands dirty if you want results. Don’t avoid those hard to reach areas like ceiling fan blades or under the fridge. When you do it right, you’ll feel accomplished.
  • Hasty scrubbing: If you want all of your expensive cleaning products to reach their full potential, you must live by the mantra: spray and walk away. Shower mold, mineral deposits, dirty grout and rusty appliances are not impossible to clean. Just be sure to use your products as directed and let soap soak into your surfaces before scrubbing.
  • Cleaning windows on a sunny day: Cleaning windows is a must to fulfill an authentic spring cleaning ritual, but if the sun is out, save this project for another day. Window cleaner dries far quicker in the heat, resulting in streak marks across your glass, no matter how hard you squeegee. So before tackling this task, wait until the temperature drops below 65 degrees.

Spring Cleaning Checklist Part 3: The Clean

The Kitchen

The kitchen, also known as the heart of the home, goes through a lot of wear and tear. From expired food, to gnat infested cabinets, this room deserves a thorough scrub down.

  • Remove the contents of every cabinet and drawer. Wipe down both the inside and outside of each space with detergent and a warm cloth. Organize and replace items back in their designated spaces.
  • Sharpen knives.
  • Deep clean cutting boards.
  • Remove crumbs from toaster.
  • Clean microwave and stove.
  • Shine silverware
  • Dust any displayed china.
  • Dust light fixtures, blinds, ceiling fans, and window sills.
  • Scrub the stove.
  • Sweep and mop floors.
  • Wipe down counters
  • De-grease backsplash
  • Shine faucet, sink, and clean the drain.
  • Reseal grout if necessary.

Pro Tip: Start from the top and work your way down to avoid having to re-mop floors as a result of settling dust.

The Bathrooms
Because so much moisture is trapped in your bathroom on a daily basis, the room is a breeding ground for mold. Not to fear, your floor to ceiling clean will stop mold growth in its tracks.

  • Scrub mirror with glass cleaner.
  • Remove all items from vanity and scrub insides with detergent.
  • Replace items back in vanity in an organized fashion and discard expired medicines and products.
  • Clean toilet bowl
  • Remove lid and set from toilet to scrub around seat bolts.
  • Spray anti-mold cleaning agent on shower doors and walls.
  • Wax bathtub.
  • Shine faucets.
  • Dust vent covers.
  • Clear sink and shower drain.
  • Clean window sills.
  • Sweep and mop floors.
  • Wash towels and bathmat in hot water.

Pro Tip: Keep a squeegee in your shower year round to prevent mold growth and mineral deposit build-up to simplify next year’s spring cleaning.

The Bedrooms
From the master bedroom where you spend a majority of your time to the guest room that receives little to no attention, bedrooms collect dust mites and deserve a full overhaul.

  • For each drawer: remove items, dust, replace drawer liner, organize items and return nicely to their dedicated spaces.
  • Donate items you no longer use.
  • Launder bedding in hot water.
  • Sprinkle baking soda on uncovered mattress, wait, and vacuum.
  • Air out mattress pad.
  • Vacuum under bed and behind dressers.
  • Clean out closets.

Pro Tip: If you are uncomfortable using harsh cleaning products in your most intimate spaces, consider going “au naturel” with a DIY cleaner. A lemon juice and salt scrub or a vinegar and water mixture will get the job done.

Everywhere Else

  • Open windows
  • Vacuum dust from baseboards and scrub trim.
  • Vacuum spider webs from corners.
  • Deep clean carpets and rugs, refinish hardwood floors, and shine tile or linoleum surfaces.
  • Dust window screens.
  • Vacuum, sweep, mop (In that order).
  • Spot clean walls.
  • Dust art and light fixtures.
  • Sweep porch.
  • Replace welcome mat.
  • Clean upholstered furnishings.
  • Ensure fire safety by changing the batteries in smoke detectors.

Pro Tip: As you clean, make a list of things you notice you need or that need to be fixed (i.e. out of flour or a chip in the banister). Don’t look at this list until you have completed your entire spring cleaning.

Good luck and happy cleaning! 

*to receive a complimentary printable Spring Cleaning Checklist please click on picture above

North Reading Community Spotlight: PARK AND RECREATION DEPARTMENT

We at Farrelly Realty Group like to say, Real Estate is local and we are as local as the come!  We understand that our clients are not just buying a house but searching for a home within a community they feel they can belong.  We are connected to the communities we serve and want our clients to feel satisfied with their home AND happy in their new community. We will be bringing a new series to you each month called our "Community Spotlight".   The series will highlight different aspects of the community in order to bring you that "hometown" feel right through the your device. So sit back, relax and learn more about the  North Reading and the Park and Recreation Department and all it brings to the residents of North Reading!

 

North Reading Community Spotlight Series- THE HORSESHOE GRILLE

We at Farrelly Realty Group like to say, Real Estate is local and we are as local as the come!   We understand that our clients are not just buying a house but searching for a home within a community they feel they can belong.   We are connected to the communities we serve and want our clients to feel satisfied with their home AND happy in their new community.  We will be bringing a new series to you each month called our  "Community Spotlight".   The series will highlight different aspects of the community in order to bring you that "hometown" feel right through the your device. So sit back, relax and learn more about North Reading and the Horseshoe Grille.  The Horseshoe is one of North Reading's establishments where locals go to enjoy food, drink and entertainment.   We hope to see you around town soon!