Ready to remodel your kitchen? Adding a deck? Thinking of selling your home in the next few years? Before making any improvements to your home, you might want to think about the return on your investment. While a beautiful new kitchen with quartz countertops and new appliances would add value when you sell, will that increase in value be the same or more than what you spend on the update?
The 2022 Cost vs. Value Report is out, and the return percentages shared here are based on numbers in Indianapolis, Indiana. Actual returns in southwestern Indiana may vary a little, so it’s always best to check with your local real estate experts. During the pandemic, many television sets were tuned to HGTV and a new class of inspired DIYers was born. If you’re in this group, your returns could be even greater if you are taking on the cost of the labor yourself.
Exterior Updates
Oddly enough, a couple of the higher return upgrades are on the exterior of the home and come with little cost. What about installing a new garage door? Sure it’s not glamorous, but you will recoup 99% of the cost. Another low-priced improvement is a new steel front door. At a cost as low as $1500, you can expect an 88.5% return.
If you want to go for a more high-profile project, replace the old vinyl siding on your home with manufactured stone veneer. The fancier and a little more costly cladding retains 94% of its value. Looking to replace the roof? Opt for asphalt shingles as they return 70% of the cost vs. 59% for metal.
Main Bedroom and Baths
For the main bedroom suite, buyers are looking for larger main bathrooms and expanded closets. Glamour baths are still popular, although some homeowners are replacing large, deep bathtubs with roomy tiled showers, often with dual showerheads or a custom spray system. If you’re remodeling this bedroom and bathroom, you might also keep the future in mind, whether for yourself or for a potential buyer. Address any physical limitations you or a buyer may have as you age and prepare for them. It’s becoming more common for remodeling projects to include features that will accommodate wheelchairs or walkers. This means barrier-free showers and wide doorways. You can probably add sliding doors to this list.
Bathroom remodel returns range from 62% for upscale (think heated floors, double sinks, stone countertops, etc.) to 71% for midrange (new tile surrounds and floors, chrome fixtures, a solid surface counter, etc.). Again, with the focus on accessibility and the growing popularity of “aging in place” homes, the bathroom universal design (a return of 70%) is becoming more commonplace and desirable. It can include wider doorways and more room between fixtures, lower vanities with room for a wheelchair, roll-in shower access, a taller toilet, shower seating, and more.
Outdoor Spaces
A new welcoming outdoor space can be used as an outdoor home office by day and an entertainment venue by night. For a deck constructed with wood, you can expect a 77% return while a composite deck will return 70%.
And of course, if you want to add an outdoor kitchen, just don’t go crazy. Keep it simple, as these popular additions are seeing more bang for their buck in the warmer climates than they are here in the Midwest. Design the kitchen around your grill, but forgo the wood-burning pizza oven. Who doesn’t love a good brick oven pizza, right? But if the next buyer doesn’t think they’ll get enough use out of it, it may go undervalued.
Indoor Kitchen
A minor INDOOR kitchen remodel can yield an 87% return on your remodel investment but you will only see returns of 58-63% on a major redo, midrange to upscale. If you’re thinking of selling soon, a kitchen “facelift” might be all it needs. A little painting, refinishing surfaces, and upgrading the appliances will return more than a full-on remodel.
Some of the more discretionary projects, like major bath, major kitchen, and major main suite remodels, tend to have a lower impact on the price of a home. These projects typically involve a number of product options that have a strong appeal to the client making the selections but tend to be too individualized to provide broad appeal. There is no one best cabinet style or color, no perfect tile, or fixture design that everyone likes.
While design trends have wide appeal among a range of homeowners, keep in mind that tastes vary. What one homeowner might see as the most beautiful bedroom, bathroom, or kitchen, another might think it needs a complete redo. Unless you are planning to stay in your home long enough to enjoy your redo, avoid going overboard; keep improvements in the neutral zone.
For all of the latest information on our local real estate market in Southwestern Indiana, you can always trust the professionals at F.C. Tucker Emge. Our agents have superior training and resources at their disposal so they can better educate you about the road to homeownership. Even if you are 6-12 months (or more!) out from making a change, there is a lot to learn about the home buying and selling process, and our agents can help you learn what you need to know so that you can be confident in your decision and have a smooth experience when the time comes. Let’s Talk!
