Homeowners are expected to spend almost $340 billion in 2018 on home remodeling projects which represents a 7.5% increase over last year, according to Harvard’s Joint Center for Housing Studies. With the payback at time of resale averaging 56% of the project cost, a homeowner should carefully consider what types of projects to undertake.
Homeowners who decide to scale back their big projects are also seeing bigger returns. Minor kitchen remodels average an 81% return, while major high end cutting edge kitchen remodels just 59%. It’s the same for bathrooms. The reason is that not all buyers find the latest and greatest trends appealing. It makes more financial sense to rein in your creativity when remodeling. Not everyone likes the latest expensive trend, but they do like like basic projects like new appliances and fixtures that are functional and new.
Seemingly mundane projects such as a garage door or window replacement can reap some of the highest returns – 75%. A new steel entry door can rturn as much as 91.3% of it’s cost.
The payback for a project also depends on geography as well. The highest remodeling returns are on the West Coast, where the average payback is 64% of the cost. In the Mid Atlantic, the return falls to 51%.
Wallingford PA Real Estate – Wallingford, PA 19086