Are you thinking about remodeling but don’t know which project to start with? One smart way to narrow down your options is to focus on the ones with the highest ROI, adding the maximum value to your home at the best price.
Given the current state of the housing market and the predictions for the coming year, now might be a good time to take on a remodeling project. “Housing is set for a slow-down,” according to Forbes. Interest ratesare predicted to remain high as home appreciation drops, and home sales continue to decline.
But this isn’t all bad news. A less than perfect time to sell your home could be the perfect time to renovate and increase its value. When the economy slows down, building materials become cheaper and negotiations between contractors and homeowners are often tipped in the homeowner’s favor which further drives down costs. Improvements made in a slow year can pay off when the market picks up again, and in the meantime, you earn more from a rental property or simply enjoy a more comfortable place to live.
Not all remodeling and home improvements are of equal value. It helps to know which projects offer the highest ROI and which ones give you the biggest boost in the San Diego market. Let’s take a look at some remodeling ideas, their costs, and how much of that cost can be recouped in your home’s resale value. You can find a complete report on this year’s data in Remodeling’s 2020 “Cost vs. Value” report. The recoup estimates that follow for San Diego.
The number one value of adding a bathroom is that it puts your home in a new category. Think of the difference between a two bed, one bath apartment and one with two beds and two baths. These numbers are right in the title of any listing and are therefore the first thing potential renters or buyers consider when shopping around.
Midrange
Cost Recouped: 59%
Add a 6×8-foot bathroom with poured concrete walls. Includes a fiberglass tub/ shower, a low-profile toilet, ceramic tile floors, and modern lighting, wiring, and fixtures.
Upscale
Cost Recouped: 61.6%
Beyond functional, a luxurious 100 square-foot master bath connected to the master bedroom. Two sinks, a freestanding tub and separate shower. Electric floor heating and custom cabinetry.
Midrange
Cost Recouped: 67.1%
This project entails remodeling a bathroom that is 5×7 and adding a porcelain-on-steel tub. Modern shower fixtures and lighting. Ceramic floor and vinyl wallpaper.
Upscale
Cost Recouped: 63.1%
Besides installing new fixtures and amenities like a recessed shower caddy, an upscale bathroom remodel involves expanding an existing bathroom by nearly two thirds.
Universal Design
Cost Recouped: 51.4%
A universal designed bathroom remodel of a 5×7 bathroom that would include wheelchair accessibility, flat-panel electric switches, and 250-pound towel racks. Even though towels don’t weigh that much, it’s nice to know your towel racks won’t come lose any time soon.
Here in California, you’ll find a lot of kitchens that were state-of-the-art back in the 60s and 70s. Updating your kitchen comes with a significant ROI and increases energy efficiency.
Minor/ Midrange
Cost Recouped: 83.4%
As you might gather from the high recoup percentage, a little bit goes a long way when it comes to a few simple updates to bring a functional but dated kitchen into this century with new, energy efficient appliances and some simple cosmetic changes, like new cabinets, trim, and paint. Remodeling your kitchen actually has a higher ROI than upgrading an already up-to-date kitchen with nicer features.
Major/ Midrange
Cost Recouped: 63.8%
A major midrange kitchen remodel goes beyond aesthetics and appliances with features like custom cabinets, an island, custom lighting, a dishwasher, and a vented range hood.
Major/ Upscale
Cost Recouped: 60.2%
As with cooking, what sets a good kitchen apart from great is often the little details, details like task lighting and top of the line cabinets, a glass-tile backsplash, and undercabinet lighting.
As with a bathroom addition, adding a master suite is a game changer that appears right in your listing. It’s also a big comfort upgrade.
Midrange
Cost Recouped: 72.1%
A 24×16-foot master bedroom suite featuring a walk-in closet and well-appointed bathroom.
Upscale
Cost Recouped: 60.3%
An upscale master suite addition is more like adding a separate apartment. Features include a sitting area, gas fireplace, and French doors.
Adding a deck is like increasing the square footage of your house, and it’s hard to find a place where you’d get more year-round use out of one than in San Diego.
Composite
Cost Recouped: 81.9%
Composite decking is more expensive upfront but has lower upkeep costs over time.
Wood
Cost Recouped: 88.4s%
Classic, rugged, and beautiful. Wood is cheaper to install and arguably more aesthetically pleasing.
Cost Recouped: 66.6%
This is like adding an outdoor living room that’s usable year-round in San Diego. Features include a firepit for chilly nights and an awning for sunny days.
A quick and simple fix that can transform the look of your home and save you money on energy bills.
STEEL
Cost Recouped:75.3%
A steel door prevents leaks and keeps your home insulated. It’s also a home-security upgrade. Since a door is only as strong as its weakest point, steel door installation includes an upgraded frame and locks.
An upgraded grand entrance is an investment in your home’s first impression.
FIBERGLASS
Cost Recouped: 89.8%
This is a job that can be completed in one day and last for the life of your home.
Cost Recouped: 108.8%
Replacing your garage door has the highest ROI of any remodeling project. Nothing does more to instantly boost your home’s curb appeal, energy efficiency, and security.
From an insulation point of view, windows and doors are basically holes in your house. Installing the right ones can translate to big savings on your energy bill.
Vinyl
Cost Recouped: 83.7%
Energy saving designed to match your home’s current trim.
WOOD
Cost Recouped: 87.6%
Also, energy saving but with a hardwood trim interior. This is the higher-end option.
Cost Recouped: 75.7%
Improving siding is more than a matter of looks and curb appeal. It’s an investment in the durability of your home, protecting you from moisture, termites, and other potentially expensive hazards.
Manufactured Stone Veneer
Cost Recouped: 80.7%
This is yet another project that instantly boosts curb appeal and makes your home a more inviting place to return to. Stone veneer looks the same as pricier options and puts less stress on your foundation than real stone.
When the time comes to replace a roof, upgrading can mean peace of mind for years to come.
Asphalt Shingles
Cost Recouped: 77.5%
Roofing tends to come with long warranties because roofs are meant to last for decades. Whether you decide to take on a roofing project will depend on the current state of your roof.
METAL
Cost Recouped: 68.3%
This option would also include skylights and an ice-barrier–not that you need that in San Diego. It’s worth remembering that not only is the material metal roofing more expensive per square foot than asphalt shingles; it also requires more skilled and specialized labor which comes at a premium.
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Start your remodeling project today! Give us a call, and we can help you decide the best valued project for your goals.
