Can’t decide whether to remodel your kitchen or your bathroom? If you’re thinking of selling your house at any point, you should know that one home improvement project may turn out to be a wiser investment than another. In fact, there are many cases in which it’s possible to recoup more than half of the money you put into a project in the first place.
Remodeling Magazine’s 2016 Cost vs.Value report provides helpful breakdowns of major and minor home improvement projects. The report outlines the average costs and the average amount expected to be recovered at the time the house is sold. If you plan on staying in your house for a long time, it’s important to weigh how much use and pleasure your family will get out of the project. However, if you’ll be selling in the near-term, you’ll want to expand that focus to include projects that make financial sense.
The report finds that when it comes to midrange projects, these four undertakings give you the most bang for your buck:
- Attic insulation: Having fiberglass insulation installed in the attic will costs you an average of $1,268 if you have a 35×30 floor that is air-sealed. Real estate professionals estimate that if the home sells within a year of project completion,$1,482 can be recovered. This means you’d be making money on the project.
- Backup Power Generator: If you spend $12,712 on a backup power source, you’re expected to recover 59.4 percent of your investment when you sell your house. You might even get a greater return if you live in an area where the power goes out frequently.
- Basement Remodel: Converting a 20-by-30 foot area of your basement to a livable space with a wet bar and bathroom, insulated walls, painted walls and ceilings, wiring, light features, laminate flooring will cost you an average of $68,490. Once you sell, you’ll get about $48,194 back, or 70.4 percent.
- Bathroom Addition: It costs an average of $42,233 to add a bathroom that’s six by eight feet with standard amenities. You’ll likely get about $23,727, or 56.2 percent, back once you sell.
If you’re considering selling your house and buying a new one, there are several steps you should take before you start eagerly looking at houses. Contact Bright Path Mortgage and get prequalified for a mortgage loan. Start off on a bright path towards buying and selling!
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