Want to Update Your Home and Maximize Your Return Upon Resale? These Upgrades Are Improvements to Consider First.
Updating your home is an exciting endeavor. More than just adding amenities or upgrades that make the house more livable, your home truly becomes your own—a place with your own personal touch, designed specifically for your needs and lifestyle.
However, getting the most from your upgrades also includes the return on investment when it comes time to sell. While that $20,000 home theater addition might fulfill a long-standing personal want, it could be hard to recoup the expenditure during resale.
Nobody will fault you for the updates that you want, but if your goal is to also see a healthy return for your additions, here are the top five home updates that pay off.
1. Exterior Updates, Part I
Surprised? While exterior upgrades may not directly impact a home's livability, they greatly enhance curb appeal, which means significant returns when your house hits the market. According to Remodel's 2020 Cost vs. Value Report
, exterior projects reap the most reward for San Francisco, the Pacific region, and the U.S. as a whole.
For the San Francisco and East Bay region specifically, replacing siding with manufactured stone veneer will recover 164.1% of its outlay ($11,455 job cost vs. $18,800 resale value), garage door replacement recoups 136.1% ($4,376 vs. $5,958), steel entry door replacement sees a 120.8% return ($ 2,260 vs. $2,731), and a wood deck addition earns back 102.8% ($19,999 vs. $20,553). Composite decks get back 89.7%.
2. Minor Kitchen Remodel
There's no denying that the center of activity for most homes is the kitchen, and it doesn't take much to impress homebuyers. A minor kitchen remodel that runs approximately $30,000 will return 94.4% of your investment. Compare that to a major $83,000 upgrade that returns only 73.1%. If it's a high-end upscale remodel of $150,000-plus, the return will hover around 70%.
3. Bathroom Remodel
Perhaps, at times, underappreciated by homeowners, bathrooms rate high for those seeking new residences. A mid-range bathroom remodel costing approximately $29,000 will earn you an ROI of 89%. At the cost of $75,000 or more, a luxury bathroom update sees an ROI of around 72%.
4. Master Suite Addition
Any home addition proves a tricky—and pricey—proposition. While they add much-needed space, additions that don't flow naturally with the existing structure are a turn-off to potential buyers and dramatically lower your ROI. That said, an addition done right enhances a home's comfort and functionality and will earn you a decent return.
Master suites generate the biggest bang for your buck, with an 85% ROI on projects that run between $175,000 and $200,000. Upscale suites, while ideal for the right high-end home, fetch considerably less—only a 65.2% ROI.
5. Exterior Updates, Part II
Exterior updates generate such positive returns they earn a second mention on our list. Here, it's all about your windows, doors, and a specific type of siding. Large-scale improvements to your home's facade don't get as much mileage as the modest updates noted earlier, but they may tip the scales in a competitive market.
Window replacement (92% return for wood, 88.7% for composite) and fiber-cement siding replacement (88.2%) are in the upper tiers of upgrade ROI. Grand entrances—where a simple entryway is widened or enlarged and replaced with sidelights—provide a 78.2% return on a $10,000 to $12,000 investment.
Ready to sell your current home or in the market to buy and make your next major move? Contact Prema Subramaniam
today and let her be your guide to East Bay luxury homes in Danville, Dublin, and Fremont, California.