Home Improvements that Really Improve

Home improvements often require significant investments of
time and money.  Before you
undertake a major project, it’s a good idea to consider the impact it will have
on the value of your home.  If your
main goal is to recoup remodeling costs when you sell your home, the following
improvements may be your best bets.

Paint inside and out. 
Also pay attention to whether the trim and/or front door could use a
fresh coat as well.  Choose neutral
colors.

Flowers add life and color to your yard, boosting your
home’s curb appeal.

New front door. 
If it’s in such poor shape that paint won’t help it, replace
it.

New carpeting. 
If yours is old, outdated, stained or just very well-worn, replacing it
will increase the aesthetic value of your home.  Again, go
neutral.

New heating system. 
If your furnace is on its last leg, you are better off replacing it prior
to listing, as buyers will typically deduct more than the cost of replacement
from your asking price.

New air conditioner. 
Buyers consider this a major
benefit.

Minor kitchen remodel. 
Kitchens can make or break the sale; fresh paint and new knobs on
refinished cabinets will impress potential
buyers.

Major kitchen remodel. 
If your kitchen is outdated, consider a complete overhaul with new
cabinets, new countertops, a new sink and new flooring.  You will be likely be rewarded with a
higher selling price and shorter time on the
market.

Bathroom remodel. 
You may be able to get away with painting walls, cabinets replacing
the shower curtains

changes:  a new
sink, a new tub/shower, new
flooring.

New windows. 
Standard, double-paned windows often bring a decent
return.

Wiring and plumbing. 
Make sure everything is working and up to
code

Professional cleaning. 
Many buyers won’t be able to see past dirt, grime, or clutter; so if you
don’t have the time and/or energy, hire professionals to scrub it from top to
bottom.  They will catch many of the
details that you might miss.

The list below provides an overview of popular home
improvement projects and their potential return on investment.  The cost recouped is based on the owner
selling the home in the Denver Metro
market.

Project                                    
Market                   
Job Cost                  
Value @ Sale         
   Cost
Recouped

Basement Finish                         
Midrange                  
$41,999                  
$23,000                                  
54.8%

Bathroom Addition                      
Midrange                  
$14,481                  
$ 9,600                                   
66.3%

                                               
Upscale                    
$37,207                  
$19,200                                  
51.6%

Bathroom Remodel                     
Midrange                  
$ 9,982                   
$ 7,300                                   
73.1%

                                               
Upscale                    
$22,782                  
$14,200                                  
62.3%

New Deck                               
Midrange                  
$ 6,516                   
$2,900                                    
44.5%

Family Room Addition                 
Midrange                  
$50,916                  
$35,000                                  
68.7%

Kitchen Remodel                        
Midrange                  
$42,112                  
$28,000                                  
66.5%

                                               
Upscale                    
$68,984                  
$51,000                                  
73.9%

Master Suite Addition                  
Midrange                  
$66,830                  
$45,000                                  
67.3%

                                               
Upscale                    
$129,340                
$82,000                                  
63.4%

Exterior/Siding Replacement         
Midrange                  
$ 6,894                   
$ 2,700                                   
39.2%

Window Replacement                 
Midrange                  
$ 9,050                   
$ 5,000                                   
55.2%

                                               
Upscale                    
$15,050                  
$ 7,500                                   
49.8%

Data source: REALTOR Magazine

Keep in mind that the cost
to remodel can vary greatly depending on how much of the work you do yourself
and the cost of materials, subcontractors, and labor.  The value at sale will vary depending on
the current value of the home and the value of comparable homes in your
area.

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