What home improvements and remodeling projects give the greatest return on their investment? For owners of Palos Verdes homes (and the rest of Los Angeles County who choose upscale remodeling), the answer for 2009-2010 is siding replacement, window replacement and a grand entrance according to an article in the latest National Association of Realtor’s magazine which came from a survey by Remodeling magazine.
“The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism. Six of the 10 projects – siding and window replacement using a variety of materials – involve home maintenance that costs less than $14,000…Additional data prove the value of restraint. Upgrading kitchens and baths is still a smart bet. However, home owners will recoup the greatest share of their costs by foregoing super-deluxe projects in favor of mid-range kitchen and bath remodels. A mid-range kitchen remodel brings an average 72.1 percent return on investment (93.7 in L.A. County), while an upscale kitchen re-do returns only an average of 63.2 percent of the money invested” (78.7 in L.A. County). That’s a 15 point spread.
Owners of Palos Verdes homes remodel for different reasons, like the need for more space, to improve the functionality of specif rroms and to update them. Kitchen and bathrooms are usually the most expensive remodel as plumbing and/or appiances need replacing. There is no specific report for Palos Verdes real estate but there is a Cost vs Value Report for Los Angeles Countywhich is broken down into Midrange priced projects and Upscale priced projects (Reports can be accessed by clicking here on the link above). When you click on the porject name (i.e. Major Kitchen Remodel) you can then read the features of that price range to compare to your own.
Remodeling just for resale rarely nets you a dollar for dollar return. Most remodels are done for the enjoyment of the homeowner (who still wants to maximize their return when they do sell). My experience is that most buyers are looking for newer kitchens, bathrooms, master suites and nice yards. Curb appeal is important because it is the buyer’s first impression of the home.
