Report: The 3 Home Renovations That Are Worth the Cost

Report: The 3 Home Renovations That Are Worth the Cost

Renovating your home can be a huge undertaking and
not without its headaches — but it can really pay off in the long
run.

While there are some home renovations that could be
more trouble than they’re worth, there are others that make all
the financial sense in the world.

The reason is because of resale value. Homeowners
interested in getting much of their money back at resale will want
to focus on projects that raise home values, according to the
National Association of Realtors.

These 3 Home Renovations Are Worth the Cost

The group’s
2019 Remodeling Impact Report
looked at three factors when
determining which projects boosted home values:

  • The typical costs associated with 20 home remodeling
    projects based on the National Association of the Remodeling
    Industry (NARI)
  • The appeal the projects would likely have with
    potential buyers
  • The seller’s recovery costs estimated by
    Realtors

Let’s look at three home renovations that add
value, according to the report:

HVAC Replacement

HVAC Replacement

An HVAC replacement is estimated to cost $8,200, according to
NARI remodelers.

Cost recovery: $7,000

Percent of value recovered from the project:
85%

Around 20% of Realtors have recommended that buyers complete
this project before trying to sell, according to the report, and 7%
said an HVAC replacement helped close the sale.

Complete Kitchen Renovation

Kitchen renovation

A complete kitchen renovation is estimated to cost $68,000,
according to NARI remodelers.

Cost recovery: $40,000

Percent of value recovered from the project:
59%

Around 12% of Realtors have recommended that buyers complete
this project before trying to sell and 10% said a complete kitchen
renovation helped close the sale.

Kitchen Upgrade

Report: The 3 Home Renovations That Are Worth the Cost

The report says a kitchen upgrade is estimated to cost
$38,300.

Cost recovery: $20,000

Percent of value recovered from the project:
52%

Around 40% of Realtors have recommended that buyers complete
this project before trying to sell and 20% said a kitchen upgrade
helped close the sale.

For more project analysis, check out the
full Remodeling Impact Report
.

Of course, remodeling costs are influenced by several factors,
including materials, condition of the home and homeowner
preferences.

Clark: How Home Renovation Can Work for You

Money
expert Clark Howard
says small changes to your home could be
DIY projects but the larger ones are best left up to professionals,
especially when it comes to fixer-uppers.

If you’re good with your hands and have experience
in building, Clark says, you’re the kind of person that can
really save money during a home renovation.

“By doing the work themselves, those owners can
have instant equity in the home if they’re going to stay in it,
or have a good return on it if they sell,” Clark
says
.

More Money and Housing Stories From Clark.com:

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Report: The 3 Home Renovations That Are Worth the Cost
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Source: FS – All – Real Estate News 1
Report: The 3 Home Renovations That Are Worth the Cost