When homes decrease in value, people stay put. Many are unable to move due to a lack of equity or can’t afford the sale and moving costs. But if homeowners need a change, will they recoup any of their costs if they remodel?
Remodeling Magazine’s Cost vs. Value Report contains statistics on the estimated amount the cost of certain midrange and high end remodeling projects will be recouped upon a future sale. The good news is through the bad times of 2009-10, the Report showed that homeowners still did well if they decided to make certain improvements.
The data is grouped into Additions, Remodeling and Replacements, with the job cost and estimated resale value given for each item in those categories. The cost data is produced by a computer program, with the resale figures provided by Realtors. The Report is also divided by region. Arizona is in the Mountain area, which includes Colorado, Nevada and other northern mountain states.
According to the Report, upgrading kitchens and bathrooms are still a smart bet. The percent of cost recouped in Arizona on a major kitchen remodel is 73%, and a minor one is 76.6%. A bathroom remodel will recoup 70.4%.
The project with the biggest return on investment on average was the replacement of a midrange entry door. The cost recouped was the highest in our Mountain area at 111%. It is also the least expensive item surveyed, proving again that it is worth every penny to make a buyer’s first impression a good one.
We can help you decide on which pre-sale renovations will give you the most bang for the buck whether times are good or bad. Give SimplySOLD a call before you remodel! You can reach us at 480 675-0112.