The housing market is heating up, and homeowners who plan to place their properties on the market are considering taking on remodeling projects that return the most value and increase selling likelihood with better curb appeal or popular features.
Housing market data reveals small, smart remodels reward homeowners with better return on investment and can help sell their home. Here is a list of top five remodeling projects released by the National Association of Home Builders (NAHB) Remodelers:
Building on a wood deck returns 82 percent of the expense, according to Remodeling magazine's Cost vs. Value study. Decks built from composite material also offer a hefty return. Home owners and prospective buyers are attracted to outdoor living space, where they can relax and entertain near the comfort of indoor conveniences.
Improving curb appeal with small enhancements can increase the likelihood of a home sale. Refreshing the exterior with new siding updates the look of the home and is a necessary home maintenance task.
Updating windows can also return a solid portion of the investment (78 percent for wood frames and 77 percent for vinyl). New, energy-efficient windows help reduce energy leakage from the home and can bring down heating and cooling bills.
A minor kitchen remodel can improve the look without costing a bundle, and yields an 80 percent return. Consider replacing cabinetry fronts, countertops, and flooring. Installing low-flow faucets and energy-efficient appliances can also reduce water and energy expenses.
Payback on remodeling a bathroom can reach 75 percent with new fixtures, tile, toilet, vanity and lighting. Low flow toilets consume less water and can decrease the monthly water bill.
Smart remodeling projects for improving the home can attract buyers and make the home more appealing. Carolyn Miller, president of the Silicon Valley Association of REALTORS®, says REALTORS® are actively involved in preparing a home for sale, from helping sellers showcase a home by providing ideas to maximize curbside appeal, to repainting, replacing flooring, updating windows and other projects.
Miller reminds homeowners to consider how long you plan to live in their home and the number of years left on their mortgage before they decide to undertake a big project. If they plan on selling their home and would like to do some remodeling soon, she advises them to consult a REALTOR®.
"REALTORS® can provide input on what projects can add value to a home. They are also the best source of information about a project you plan to undertake, as it may exceed what you can or want to do with your existing home," said Miller. "A REALTOR® can likewise explain the variety of factors that affect a home's value, such as location and condition of surrounding properties."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.