Home renovation, return on investment
I have met a lot of people when they are preparing to sell their home in Charleston and quite a few want to replace carpet, put in hardwood floors, replace vinyl flooring with tile, upgrade their counter tops or undertake a variety of other improvements to make their home look as good as possible to potential buyers. Of course, this is especially important in today's Charleston South Carolina real estate market but it seems that a better time to upgrade, update or renovate your home would be when you can enjoy it, not just for the weeks or months while your home is for sale.
It's important to differentiate major home renovation projects from updating or upgrading. Adding or renovating a bathroom, a major or minor kitchen renovation, creating a master suite with walk in closet(s) and a luxury master bath or other major projects are unlikely to be tackled just prior to putting a home on the market.
These types of projects are usually contemplated by a buyer upon purchasing a home or much later by those who have lived in a home for a number of years and who might find it more practical to renovate and update rather than move to a new home. They can be very costly and should be undertaken with an understanding that the return on investment is generally not 100%. You can view a chart below with the expected return on investment courtesy of the National Association of the Remodeling Industry.
| Renovation | Average Cost | Resale Recovery |
| Paint | $700 | 200% |
| Add Bathroom | $10,000 | 96% |
| Kitchen Renovation, minor | $8,500 | 79% |
| Kitchen Renovation, major | $24,000 | 70% |
| Bathroom Renovation | $7,500 | 69% |
| New Roof | $4,600 | 61% |
| Add Swimming Pool | $24,000 | 39% |
|
Please note that a new roof has a lower return simply because that is considered normal maintenance and is expected by many buyers and swimming pools fall in the category of limiting the number of potential buyers because many would rather not have a swimming pool in the backyard. A fresh coat of paint, inside and out, is the best investment you can make.
An important consideration is that kitchens, baths and master suites are the most demanded upgrades by buyers in today's real estate market and if you are competing with new construction (and whether you want to believe it or not, you are) today's newer homes offer luxury and floor plans featuring these important rooms.
Now let's look at some home improvement projects that can upgrade and update your home less expensively than renovation that can add value as well as significant enjoyment to you while you are living in your home. And when the time comes to sell, buyers will appreciate the quality appointments you have put into your home. When you do decide to put your home on the market, the very best recommendation I can make is to give your home a fresh coat of paint. It is the number one return on investment you can make and will most certainly be appreciated more than that old wallpaper that you may have loved but is unlikely to appeal to most buyers.
Take a look at adding some fresh lighting fixtures, installing new counter tops, changing out your door handles and hinges, putting in hardwood floors or just adding new decorative knobs and pulls to your existing cabinets. All very nice, some are reasonably inexpensive and easy to do projects and all are sure to please you while you are living in your current home. Don't wait to put your home on the market before updating, get some enjoyment while you are still living there.
I hope my wife doesn't read this post. 