As the craziness of summer has come to an end, it’s a good time to consider some home improvement projects. When it comes to adding value, not all home improvements are created equal. In general, home improvements provide a 70 percent return on investment. ROI can be useful to know if you’re thinking of selling, contemplating borrowing against your home or just want a sense of its overall value. The National Association of Realtors surveyed over 2500 homeowners on which home improvement projects brought the most cost recovery and also the most joy to homeowner. The report covers both interior and exterior home improvement projects. Obviously the actual cost of each project and recovery costs are influenced by many factors, including location, project design, quality of materials, age and condition of the home, and homeowner preferences.
The Joy Score:
Besides looking at the economic gains of a remodel, the NAR study assigned a “joy score” designed to measure the happiness homeowners derived from each project, with a score of 10 bringing the most joy. Not surprisingly, there were a lot more projects that brought a high degree of joy to the homeowner than there were projects that recovered more than 100% of their estimated costs.
Cost Recovery Score:
This is an estimate of the likely dollar value each project would add to the house at resale. In comparing that dollar value to the estimated cost of each project, a recovered project cost percentage was calculated.
Some of the top home improvement projects that I have seen increase the sell-ability of a home in my 33+ years of experience in the Tahoe area include: curb appeal (paint, front door, garage door, landscaping, driveway), kitchen remodel with upper end appliances, bathroom remodel, and new flooring.
Curb Appeal:
Curb appeal is vital as it’s everyone’s first impression of your home. It doesn’t have to be expensive or elaborate, a thorough clean up, paint, a new front door, garage door, landscaping, and driveway are the best ways to get buyers attention and also give you a sense of pride in your home.
New Front Door:
A new front door is a quick and inexpensive improvement that can make a big difference in outward appearance. The front door is something people see right away and the ROI is estimated at around 90%.
Garage Door:
Just like the front door, homes with front-facing garage doors can benefit from a garage door replacement. The return on investment is usually greater than the cost of the door. Old garage doors can be an eyesore for curb appeal when trying to sell your home. This is an easy way to make your home stand out from neighboring properties.
Kitchen Update:
Needing to replace old and outdated appliances is a major issue for most buyers. Surprisingly (as it’s a relatively easy fix), the number one turn-off that buyers report when shopping for a home is outdated kitchen appliances. Replacing old appliances with newer ones will command a higher selling price. The return on investment is often worth it, even if you plan don’t plan on using the appliances for long before you sell.
New Windows:
New windows can be a massive improvement for your home. Old windows not only look bad, they often mean more allergens in the home, poor insulation, and higher energy bills. The return on energy-efficient window replacement is generally high and, especially in Tahoe, prospective buyers appreciate the upgrade.
New Flooring:
Not only does new flooring score a 10 on the joy score, some reports indicate it can yield upwards of 300% return on investment. New flooring is a quick and dramatic way to quickly add value to your home.
Bathroom Update:
If you aren’t up for an entire bathroom replacement, paint, replacing wall coverings, and old shower doors can be simple ways to give the illusion of a more updated bathroom. Even a freshen up can go a long way here.
Although obviously I cannot guarantee an increase in value, this is a passion of mine and I would love to help if you are considering a remodel. Please reach out if you would like input on your home’s value and home improvement projects that can bring the most value to your home or if you would like to be put in contact with the best service providers in our area.
Here are the numbers from our local market this week:
We had 1 new condo and 1 new home come onto the market this week. We currently have 35 active condos ranging from $359,000 to $2,995,000; the median condo price is $845,000. We currently have 43 active homes on the East Shore ranging from $1,075,000 to $64,500,000 with the median price of $3,250,000.
Here’s a year-to-date local update:
Local East Shore Lake Tahoe, Nevada Stats – All Year-to-Date
Total Sales YTD:
Condos: 72 (↓15% YOY) | Homes: 68 (↓46% YOY)
The Median Sales Price:
Condos: $687,000 (↓1% YOY) | Homes: $1,540,000 (↑3% YOY)
Number of Sales Over $1 Million:
Condos: 16 = 22% (↑6% YOY) | Homes: 55 = 81% (↑4% YOY)
Highest Priced Sale:
Condos: $5,665,500 (↓5% YOY) | Homes: $32,000,000 (↑52% YOY)
Median Price Per Square Foot:
Condos: $599.70 (↑12% YOY) | Homes: $626.17 (↑3% YOY)
Median Days on the Market:
Condos: 71 (↑37% YOY) | Homes: 73 (↑4% YOY)
List to Sell Price:
Condos: 98% (↓5% YOY) | Homes: 96% (↓3% YOY)
Price Reductions this Week:
Condos: 0 | Homes: 1
If someone you care about needs guidance or recommendations, please share our contact information as we are honored to be able to help! If you would like to receive our in-depth market update or would like an evaluation of your property’s value we would love to hear from you! We’ve put together some information below that we think you’ll find useful. If you have anything you want to share with our community please let us know so that it can be included in future newsletters.