Money is Tight – What Remodelling Gives Me the Most Bang for My Buck?

Many people have lost their jobs or are on tight budgets these days and I hope if you are reading this that you are not one of them.  most are selling their property for undermarket value, but from time to time there is someone out there who has equity in their home and wants to sell and take advantage of the low prices out there.

When that happens, we run into the age old question of whether or not to spend money on remodeling.

As a rule of thumb, in this market if you are selling I recommend that you do no more than carpet and paint since those are the cheapest and easiest items to do and because realistically you may not see any return on investment in the immediate future for putting in the high-grade granite countertop.

Nowadays some sellers are looking long-term and will be remodelling regardless, therefore they are curious as to what they should upgrade and will it help if in 3 years they are going to sell?

The National Association of Remodeling Institute looked into all the numbers and compared them to show you where you’ll get your most bang for your buck. 

Although most people would be interested in adding more to their master bedroom, you would only be recouping 65% of your investment.  What gives you the most bang for your buck?

Let me tell you that it is either the kitchen or the bathroom.  What’s your guess?

Kitchen remodels are expensive.  Do they give you ROI that makes sense?

The answer is yes!

When looking at recouped amount of cost, kitchens give back 78% versus 71% with bathrooms, and 48% with home office remodels.

Does that mean that you have to put in granite to get a good ROI?  Here are some tips:

• Granite is price-y, go for ceramic tile, concrete, or engineered stone
• Get up-to-date appliances, there are retailers that sell secondhand appliances that are almost as good as new.
• Cabinets can get a makeover with laminate veneers, use lighter woods and don’t go too contemporary, you may outdate the rest of your house.

Remember that a buyer has to be able to envision living in the home, so make it work for all lifestyles.

Source for all average cost figures: Remodeling 2009-2010 Cost vs Value Report, Remodeling Magazine.

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