5 Home Upgrades To Increase Resale Value In 2014

By Tali Wee of Zillow

All 35 home improvement projects surveyed in Remodeling Magazine’s Cost vs. Value Report increased in value on a national scale in 2013. Such strong gains are encouraging for homeowners looking to remodel and professionals who facilitate these upgrades.

While all renovations became more cost-effective in the last year, homeowners should focus on upgrades that are most likely to have the highest return on investments (ROI). In order to predict the best investments, consider the five strongest upgrades from 2013.

Steel Door Replacement

Entry door replacements are consistently increasing in ROI each year. Installing a new steel door can lead to an 85.6 percent cost recoup for home sellers. On average, the job costs $1,137 to complete. With a resale value of $974, a steel door investment is a mid-range project where a significant portion of money down is returned after a home sale.

Wood Deck Addition

Similar to steel door replacements, wood deck additions are in the top five home improvements to gain the most value year-over-year. Last year, the average cost for adding on a wooden deck was $9,327 with a resale value of approximately $7,213. Homeowners can expect to recover 77.3 percent of their initial investments after selling their homes. Further, house hunters with families or shoppers looking to entertain are impressed with outdoor living spaces such as decks and patios.

Garage Door Replacement

Both midrange and upscale garage door replacements are consistently strong investments. In 2013, midrange replacements cost an average of $1,496. The potential ROI for a typical new garage door was 75.7 percent. In comparison, an upscale door replacement costs $2,720. However, the recouped costs were 75.2 percent, slightly lower than the ROI percentage of a midrange replacement. In the case of garage doors, home sellers won’t see greater returns for higher-quality doors. Keep return differentials in mind when gauging how much money is necessary to replace a garage door in order to see investment regains.

New Siding

Vinyl siding replacements cost an average of $11,192. While it may seem like a large down payment, the potential resale value averages $8,154. Homeowners can expect to receive a 72.9 percent ROI after replacing the siding on their homes. In addition to its resale benefits, vinyl siding is less expensive than red cedar or redwood and is less time-consuming to install. Further, vinyl siding is attractive to homebuyers because it’s long-lasting and requires little maintenance. A home on the market with vinyl siding may stand out to those looking for a low-maintenance property.

Attic Bedroom Addition

An attic bedroom remodel costs $49,438 on average nationally. Compared to 2013, the value of attic bedroom remodels increased by 15.6 percent and moved from eighth to fourth in overall cost-effective remodels. Adding on an extra bedroom in a home widens the scope for house hunters. For instance, house hunters looking to purchase a three-bedroom home may limit search queries to reflect their needs. Therefore, a two-bedroom home is most likely overlooked by people searching for a minimum of three bedrooms, even if there is potential to build an extra bedroom in an attic space. Adding an extra room prior to listing a home allows the seller to advertise the property with more bedrooms, which widens the buying market and increases competition for a property.

These projects’ values have increased most significantly in 2013 from years prior and are a good indication of the upcoming trends in the home improvement industry.

via:http://www.fixandflipnetwork.com/2014/02/5-home-upgrades-to-increase-resale-value-in-2014/