The best and worst home remodeling projects according to realtors

The best and worst home remodeling projects according to realtors

According to a recent study conducted by Harvard’s Joint Center for Housing Studies, homeowners will spend an estimated $325 billion on home remodeling and repairs this year. Spring and summer are the busiest seasons for home remodeling projects when the weather is warmer and homeowners have hopefully received a tax return that they’re looking to invest back into their home. Home improvement projects is a great way to spend money because it’s an investment that can pay off big down the road if you decide to sell your home. But not all remodeling projects are as good of an investment as others. According to the National Association of Realtor’s "Remodeling Impact Report" here are the best and worst remodeling projects based on how they impact your home’s value.

Best indoor remodeling project

According to the NAR’s report, the number one interior home improvement was a kitchen remodel. The cost to upgrade a kitchen is approximately $30,000 on average. This project will add about $20,000 to the home’s value on average for a 66% return on investment. Another reason this is a great remodeling project to consider is that the kitchen is what buyers are most interested in when they look at a home so a kitchen remodel can not only increase the value of your home but make it easier to sell as well.

Worst indoor remodeling project

The worst indoor home improvement you can make is a closet renovation. Though this project is a lot cheaper than a kitchen remodel (an average of $3,500) only 1% of realtors said that a new closet helped them close a deal on a sale. So while you might benefit from a closet remodel, keep in mind that it’s probably not going to help you sell your home or add to its value.

Best outdoor remodeling project

The NAR’s report found that when it came to outdoor home improvements, buyers value structural upgrades over decorative ones. The number one exterior renovation was a new roof. The cost of a new roof is about $7,600 on average but it can literally pay for itself when you factor in energy savings, tax credits, and the increased value to your home. In fact, you can end up making money on this investment.

Worst outdoor remodeling project

The worst exterior renovation, the report found, was replacing the entry door. A new front door costs an average of $2,000 to $2,500 so it’s a relatively inexpensive project but as with a closet renovation, only 1% of realtors said it helped them close a sale. The one good thing about a front door replacement is that it does recoup 75% of the cost at sale, it’s just not a determining factor when prospective buyers are deciding whether to make an offer.

Source: NBC News

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