Do Renovations Increase the Value of Your Home?

Are You Wondering If It's Worth It To Renovate?

This big question is: if you put more time and money into your home, will you get the return on investment you were hoping for when you go to sell it?

It is a beautiful day in Novi, Michigan. With a high of 68 degrees we say good-bye to summer and hello to fall this week. Fall is one of the most gorgeous times of year in Novi with tree leaves turning an array of vibrant reds, yellows and oranges.

Is It Really Worth It To Renovate? 

Today we are going to look at a question many home owners ask themselves: is it really worth it to renovate? Renovating can be a lot of elbow grease, especially if you do it yourself. We've all heard that renovating certain parts of your home will actually increase your home’s value. We know there are less expensive ways like changing out fixtures or replacing the knobs on the kitchen cabinets.

However, as the market is increasing more and more, people are finally feeling the relief they needed to put their home on the market. With so many homes now on the market, what will make your home stand out? We've been looking at 2013 Cost vs. Value report to see if it is really worth it to renovate.

2013 Cost vs. Value Report

This is the 25th report that Remodeling Magazine has published. The reports look at 81 cities all across America. It shows the cost of overall construction on popular renovating projects and compares them to the resale value. 

Here's the good news:  the average cost to value ratio has improved. It hasn't just improved, but it is the best it's been in 6 years. One of the biggest reasons why this has happened is the lower cost of construction. 

Prior to the recession, the cost to value ratio was so high that it turned many homeowners away from replacing projects. Since the recession, price is now on everyone's mind and replacement jobs have increased. This is because of the lower cost of construction along with the increase value it gives to your home.

What we mean by replacement is to completely replace what is current existing. Remodeling means just that; to remodel instead of completely replacing. 

So Where Do You Put Your Money?

Here are 5 remodels that scored high on the report

  • Entry Door Replacement
  • Fiber Cement Siding
  • Wood Deck Addition
  • Garage Door Replacement
  • Minor Kitchen Remodel 

It looks like first impressions are taking the lead in recent market trends for value. Normally when you think of renovating, whether you are remodeling or replacing, you may be thinking kitchen and bathrooms. According to this report, the money to renovate your home should be spent on the outside of it - the curb appeal. 

What are your thoughts?

Will you be tackling that remodeling project that you have put on the back burner before putting your house on the market?