In today’s shaky housing market, homeowners are becoming more circumspect, weighing the pros and cons of how the renovations they make will affect the bottom line, specifically if they’re trying to sell. This especially holds true with falling home prices. The average price of an existing home dropped about 13% between 2008 and 2010 to $172,900, NAR reports. The top-selling areas of a home are usually the kitchen and bathroom, which can be costly to upgrade. The national average cost of a minor kitchen remodel is $21,695, adding $15,790 to the value of a home at sale, while a bathroom remodel is $16,634, adding $10,668 to the value of a home, according to Remodeling magazine’s Cost vs. Value Report 2010-11.
Homeowners on a tighter budget who are looking to sell can appeal to space-hungry buyers, says attorney and real estate broker Tara-Nicholle Nelson, by installing built-in organizational systems such as bookshelves, closet organizers, and wine racks.
There are a slew of other inexpensive and mid-priced renovations or upgrades that can add value to a home, according to real estate experts. Here are a few:
1. Replacing a home-entry door with a steel door gives the highest return on investment of all mid-range and upscale home improvement projects, accordingto Remodeling magazine’s Cost vs. Value Report 2010-11. Nationally, the average price of a steel door is $1,218, but the cost is recouped at 102% at the resale of the house, the report says. For regional costs, visit www.remodeling.hw.net/2010/costvsvalue/national.aspx.
2. Replacing a garage door gives the second-highest return on investment, 84% of the $1,291 average price nationally, according to the report.
3. Painting is a great way to spruce up large portions of a house. The price of paint for a home’s interior varies from $12 to more than $50 a gallon depending on the quality of the paint, according to Costhelper.com, a website that shows what people are paying nationwide for products and services.
4. You can scale back costs to a few hundred dollars by refurbishing items, such as replacing faucet and cabinet door fixtures, re-facing cabinets, and upgrading light fixtures to energy-efficient designs, according to Bankrate.com.