Conventional wisdom tells us that any home renovation is a positive thing: money in is money out. Unfortunately, that's not always the case. Some remodeling projects are a better investment than others, and the projects that yield the best return on investment can change from year to year. According to Remodeling Magazine's 2015 Cost vs. Value Report, these five replacement projects will make the greatest percentage impact on the value of your home this year -- accounting for cost-to-value ratio, the key to making smart home improvements with resale in mind:
1. Roofing Replacement
Roof replacement gives you the biggest bang for your buck in 2015, rising 5.9% over 2014 values at an average cost of $7,740. Roof replacement includes removing the existing roof and installing new shingles with underlayment, flashing, galvanized drip edges and trim.
2. Garage Door Replacement
A well-chosen garage door can make a powerful statement and add a beautiful accent to your home. Garage doors come in four basic types: swing-up, roll-up, swing-out or side-sliding. The cost to install a new garage door will vary depending on style and material, but average around $1,150. This cost generally includes the new door, galvanized steel tracks, rollers or hinges, and removal and disposal of the existing door and tracks.
3. Steel Entry Door Replacement
You can add elegance and security to your home by replacing your old entry door with a steel door. Not only is this the least expensive of 2015's cost-to-value projects at an average of $923, but it also has the highest resale rating. This project includes the new door unit, jambs and threshold with composite stop. This also presents a great opportunity to choose a new lockset if you can't reuse your existing one.
4. Vinyl Siding Replacement
While vinyl siding replacement is among the more expensive home renovations, it's also the very definition of curb appeal. New siding and trim can transform the look and vitality of your home, increase resale value, and improve weatherproofing and energy efficiency. You can expect siding installation to cost between $5,600 and $8,000, depending on your location.
5. Fiberglass Entry Door Replacement
Fiberglass and steel offer superior strength and durability compared to their wooden counterparts. The cost-to-value ratio of replacing an entry door with a fiberglass door boasts an increase of 72% over 2014. The replacement process involves removing the existing door and jambs and mounting the new door unit and jambs along with exterior trim.
Projects to Avoid in 2015
2014 was the year of the major renovation; ironically, many of those projects are now at the top of the opt-out list for 2015. Opt-out projects for 2015 include:
Installing a Back-Up Generator: Last year's biggest cost-to-value hero dropped like a stone in 2015. This one was hot after Hurricane Sandy but soon lost momentum.
Adding a Second Story: This big ticket renovation slowed in terms of investment by the end of 2014 -- the result of an 11% drop in its cost-to-value ratio.
Home Office Remodel: The lowest reported return on your investment (reportedly 47.5%) is in converting a room into a home office. Potential buyers will be grateful not to have to pull out shelves or commercial grade carpeting when making your home their own.
Sunroom Addition: A potential buyer might see your sunroom as a heat siphon, maintenance nightmare or privacy concern. Like a backyard pool, a sunroom is a true matter of preference -- and as an investment, it doesn't even reach 50% on the cost-to-value rating.
All of these projects are worthy given the right home and the right conditions. Always make sure you're using licensed, bonded and insured contractors for any projects you don't want to take on yourself. Hiring a pro with a proven track record will more than pay off in the long run.
I am Bob Schmalz a California Licensed Real Estate Broker, I am the founder and owner of West Los Angeles Real Estate Group, handling all Real Estate needs from residential to investments To name a few of the cities we cover in West Los Angeles; Beverly Hills, Santa Monica, Brentwood , Pacific Palisades and Malibu are some of the most popular. Our beliefs are that our clients should have the knowledge they need to make decisions in there Real Estate Goals. In this way our clients helps us make the right decisions for themselves.
FIRST TIME HOMEBUYERS:INTEREST RATES BELOW 4% + LOW DOWN PA
"Dear Bob and Barbara,
I should have sat down and wrote this sooner. I hope your holidays were beautiful and the New Year has started nicely for you.
I wish to thank both of you for helping Carl and I find a beautiful home for our family. We needed to work on a budget yet we wanted something nice. We found it with your patience and support throughout the process.
I loved the way you took time to show us each category and price range. You showed us houses, townhomes, and condos. We were able to see what we could get for our money and what city or area we could get for the price we offered. You have a wonderful "eye" to see the flaws and good points of a place, and we really appreciate that knowledge.
Thank you too for our homecoming gifts, that was a personal touch.
May God bless you and your family always.
Christina & Carl Holkirk