Upgrading or remodeling an older home can be quite a costly venture. In the end, even when costs are watched, the real question becomes: “Will I recoup my expenses?” The future of a home improvement investment must be considered when deciding on home upgrades. Here’s a list of three home improvement projects with the lowest return on investment (ROI):
1. Home Office – Home offices don’t sell houses. At an estimated price of $28,000 for a professional home office remodel, this home project is not a winner. A project of this cost includes rewiring and new walls, and it will provide, with some luck, a -51% ROI. Less than half your money back? No thank you.
2. Sunroom Addition – Home projects that include the word “addition” are rarely fiscally savvy. This project requires adding to the home’s foundation, which causes the price to rise quickly. Resale value for this upgrade varies depending on the market, but in Birmingham, average cost in 2014 for this project was $71,000 with a resale of $48,000: a ROI of -32 percent.
3. Bathroom Addition – To reiterate what was said above, home additions will almost always be costly. Despite what most people think about a bathroom upgrade, a modest bathroom addition will be costly due to the need for extending the home’s foundation, roof and outside walls. Modest, in this case, refers to a six foot by 8 foot bathroom, and in Birmingham, this will cost $36,500 with provide a resale of $26,379: a ROI of -23 percent.
These projects and their lack of ROI are a bleak and stark reality, so this leaves many wondering, “What upgrades are worth the value?” Here is a list of three projects with the highest ROI in Birmingham, AL:
1. Wood Deck Addition – In the 2014 Birmingham market, a wooden deck addition had a cost of $9,061 and a resale value of 10,836: a ROI of 19.6 percent.
2. Steel Entry Door Replacement – In the 2014 Southern, Eastern and Central markets of metro Birmingham, the average cost of a steel entry door replacement project was $1,108 with a resale of $1,265: a ROI of 14 percent.
3. Grand Entrance – In the 2014 Birmingham market, a grand entrance, which is an upscale upgrade, had a cost of $7,243 and a resale value of $6,760: a ROI of -7 percent. Even though this upgrade has a negative ROI, this upgrade could be done in addition to a new front door adding curb appeal and initial wow factor to the home. First impressions are everything!
Despite these good upgrade projects, overall, remodeling and upgrading a current or an older home will likely be a costly headache. Harris Doyle’s new homes in Pelham, a Southern suburb of Birmingham, alleviate any need for upgrades, additions or remodeling. To learn more about Harris Doyle Homes or any of its communities, call 205-982-2896 or visit Harris Doyle Homes contact page by clicking here.