Home Improvement Returns

A Remodeled Kitchen: 80% - 120%

Added convenience is a plus for you and a prospective buyer, but easy does it. Don't put a $40,000 kitchen in a $120,000 house, even if you can afford it. It's better to move than over-improve. Keep your improvement expenditures in line with the going prices for other houses in your neighborhood so you don't price yourself out of the market. If money is tight, spend what you have to for quality appliances (especially a dishwasher) and compromise elsewhere. Or, you can do the remodeling in stages -- new cabinets and counters this year, a new floor next year.

A New Second or Third Bath: 75% - 80% // A Remodeled Bath: 65% - 75%

Keep in mind that most buyers want ceramic tile walls, abundant storage and natural light. When remodeling an existing bath, keep the sink, tub, shower, and toilet where they are and you won't have to add the cost of a plumber to the job. Rerouting water and waste lines is expensive. If you don't have to rip up floors and walls to put in new pipes, you can put more of your money in improvements that show.

Room Additions:

Family room or a third bedroom in a two-bedroom house: 80% - 100%. Fourth or fifth bedrooms are usually only good for paybacks of 50% - 75%.

Wooden Decks: 60% - 80% // Patios: 50% - 70%

Decks are more popular now than poured concrete or flagstone patios. Recent research indicates that privacy is a major selling point among today's homeowners. Enclosing a deck or patio with ornamental trees, hedges, vine-covered trellises, or a wooden fence can increase the payback.

Windows:

Skylights: 50% - 70%. Decorative windows, French doors in place of sliders, or a decorative front door: 80% - 100%. Replacing ordinary stock windows: 40% - 45%. Buyers are willing to pay more for architectural charm. One fan-light window or a pair of French doors can completely change the character of an entire house... for the better.

Fireplace: 80% - 95%

In all but the warmest regions of the country, it's at the top of the list among today's buyers. Prefabricated "zero clearance" models are the least expensive to buy and install, and are far cheaper than brick and stone conversions which must be constructed by a professional mason.

Swimming Pools: 0% - 30%

Best reserved for high-priced neighborhoods where pools are the rule rather than the exception.

Landscaping: 50% - 100%

Landscaping that reduces maintenance is more appealing to most buyers than elaborate gardens that have to be weeded, watered, and tended to. Mulch around trees and shrubs, plant hardy evergreens, replace expanses of grass with bark chips, brick, flagstone, or gravel.

Upgraded Electrical Service: 80% - 100%

Most lenders will require that it be done prior to the sale anyway.

New Gas Furnace: 60% - 75%

But, add to this the benefit of lower utility bills for as long as you live there. Old gas burners typically operate at 60% efficiency, new ones at 98%. The 38% difference can pay for the cost of a new unit over time.

Painting Exterior: 100%

Chipped, peeling, cracked, and blistered paint signals neglect to buyers. New paint puts a fresh face on a house. Better yet, a thorough washing and regular touch-up painting can save you the expense of repainting the entire house.

Interior Decorating: 80% - 100%

Paint walls and woodwork and refinish wood floors. Attractive furniture, antique rugs, artwork, and accessories are investments that impress buyers and can move with you. Appealing window treatments will have to stay, but they'll help sell the house.

[back to Sellers main page]