With home sales and prices trending upward nationwide, many homeowners are excited to take on projects to improve their home. A January 2017 survey commissioned by Lightstream found more than half (59 percent) of homeowners planned on spending money on home improvement projects this year.
"A home improvement project can increase the value of your home. It is just as valuable to homeowners who simply want to enjoy their home," says Denise Welsh, president of the Silicon Valley Association of Realtors.
What types of home improvement projects pay off in the long run? According to the 2017 Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of Realtors and Realtor magazine, curb appeal continues to generate higher returns on investment than work done inside the home. Meanwhile, replacement projects scored higher than did remodels. The annual report compares changes in home improvement project costs with Realtors' perceptions of what those projects contribute to a home's price at resale.
The 2017 report compares average cost for 29 popular remodeling projects with the value of the projects at resale in 99 markets nationwide. A longtime trend, curb appeal projects like changes to doors, windows, and siding generated higher returns on investment than other projects inside the home.
Like last year, putting fiberglass attic insulationcretxbcqrwcrybebutyr was the only project that returned a higher value than its cost, coming in at 107.7 percent. The steel entry door replacement came in second at 90.7 percent, followed by manufactured stone veneer at 89.4 percent.
More expensive projects like an upscale bathroom remodel, upscale master suite, two-story addition, grand entrance, and family room saw the highest year-over-year percentage increases in value, rising between 5.6 percent and 7.4 percent.
Cost and value vary depending on where you live. "The hotter the market, the bigger the payback," according to the report. In San Jose, for instance, the top three projects came in at 272 percent, 123.8 percent, and 128.2 percent, respectively. Visit http://www.remodeling.hw.net for more information on the 2017 Cost vs. Value Report.
Reasons for home remodeling can vary from adding more space, upgrading cabinets and fixtures, to making your home more energy efficient and increasing its resale value. Welsh notes it is important to consider how long you plan to live in your home and the number of years left on your mortgage before you decide to take on a big project.
Welsh suggests making a list of your home improvement ideas and prioritize according to your budget. She says a professional Realtor can provide important input to your remodeling decision.
"Since Realtors see so many homes each year, they can provide valuable insight on improvements that will affect your home's value," according to Welsh.
Homeowners need to decide how to accomplish their project. "A do-it-yourself project can be both rewarding and cost-effective, but make sure you are qualified to do the job. If the project is too complicated, it may be a good idea to hire a professional remodeler," says Welsh.
If you decide to go with a professional home remodeler, Welsh advises homeowners to check the person's background, references and insurance coverage. Ask about warranties on their work, who would be responsible for obtaining any building permits, and the process for changes after the contract is signed.
Welsh urges homeowners to stick to their budget."Remodeling projects can be very expensive, so before getting started, it is necessary to plan carefully. Once you've decided how much you can afford to spend, make sure you stay within your budget," advises Welsh. "Set aside money in reserve to cover unforeseen changes or miscellaneous charges."
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.