Upgrades that add value to a home are the types of expenditures that cause homeowners to dig just a bit deeper into their pockets. Home upgrades costs that can be recovered vary from year to year, and the 2009/2010 home selling season is no different.
Home Upgrades Costs That Can Be Recovered
Midrange projects have their shares of winners and losers. Remodeling Magazine outlines that the 2009/2010 season has six distinct winners (as compared to the 2008/2009 term):
- Attic bedroom projects maxing out at $49,346
- The addition of a backup power generator that costs no more than $14,304
- Basement remodels that stay under $62,067
- Fiberglass entry door replacements for no more than $3,490
- Steel entry door replacement costs that do not top $1,172
- Replacing the Roof for no more than $19,731
While these are upgrades that add value to a home, the figures above represent national averages. For example, a roof replacement – in the Los Angeles area – is significantly cheaper, depending on the size of the home and the materials used.
What Are Good Upgrades to Do On Your Home That Increase the Value the Most?
From the standpoint of recouping the cost, the front door replacement with a steel model is perhaps the one expenditure that offers more return than was initially invested. With a resale value of $1,470, it features a return of investment that almost reaches 129 percent.
The lowest return on investment is the backup power generator. Recouping only about $8,428 (or almost 59 percent), it represents the lowest winning midrange home upgrade.
Biggest Losers: Midrange Home Upgrades That Feature the Lowest Return on Investment in 2009/2010
The three least profitable home upgrades – as compared to last year – are somewhat surprising:
- Sunroom additions that cost less than $73,167 only provide a resale value of $37,118 (or 50.7 percent)
- Home office remodels that cost up to $28,375 only bring in about $13,648, which translates into a little over 48 percent
- The bathroom addition that stays under $39,046 may net about 59.5 percent ($23,233)
While these are upgrades that add value to a home in the eyes of some buyers, they do not show an upward trend in buyer interest. Thus, these upgrades may either become money pits or continue to play second fiddle to the more popular upgrades mentioned above.
Midrange Home Upgrades Costs That Can Still Be Recovered, Even Though They Are On the Way Down
Even though these home upgrades are waning in popularity, homeowners can still recoup their expenses at this time. The future home seller who is planning out some home improvements now should think long and hard if he wants to include them in the process, simply because their popularity is currently hitting a downward spiral.
The top three home upgrades that are currently featuring a downward trend are:
- Wood deck additions that stay under $10,634 can still recoup 80.6 percent ($8,573)
- Vinyl siding replacements costing about $10,607 offer a return of almost 80 percent ($8,486)
- Minor kitchen remodels that stay well beneath $21,411 provide a resale value of only $16,773 or 78.3 percent
The latter point is a bit of a surprise to the homeowner who has thus far believed that a kitchen remodel was the quintessential money-maker of all the home upgrades possible.