Home Resale Value

August 24, 2009

We get a lot of questions from people asking us about the resale value of their homes. It’s an important part of both the buying and selling process. When shopping for a home, you need to keep in mind it’s potential resale value 5, 10, and 15 years down the road. If you’re selling, than your resale value is essentially your home’s current value.

In either case, it is always best to contact your local real estate agent. In addition to being a go-to resource for any questions about your home, you can also request a comparative market analysis or CMA. A CMA will list the sales activity in your neighborhood for up to one year. Here you can determine the percentage of homes actually sold out of all those listed and you can see the average amount of time it took for those homes to sell. If you compare your homes attributes to the similar homes on the CMA, you’ll be able to have an idea of where your home’s value will fall so long as you can avoid the emotional bias that eliminates the  objective judgment needed for your home. This, again, is where having a Realtor comes in handy.

If you’re looking to increase the resale value of your home, there are plenty of tips out there that can add value, but you want to be sure you get the best bang for your buck! Here is a list of popular renovations and their rate of return.

• Roof Replacement:

Avg. Cost = $14,000 – Rate of Return = 74% – Value at Sale = $10,360

• Bathroom Remodel:

Avg. Cost = $30,000 – Rate of Return = 75% – Value at Sale = $22,500

• Basement Remodel:

Avg. Cost = $55,000 – Rate of Return = 79% – Value at Sale = $43,450

• Major Kitchen Remodel:

Avg. Cost = $55,000 – Rate of Return = 83% – Value at Sale = $45,650

• 2nd Story Addition:
  

Avg. Cost = $110,000 – Rate of Return = 83% – Value at Sale = $91,300

• Window Replacement (Vinyl):

Avg. Cost = $10,000 – Rate of Return = 84% – Value at Sale = $8,400

• Window Replacement (Wood):

Avg. Cost = $11,000 – Rate of Return = 85% – Value at Sale = $9,350
(get more helpful information on custom window replacement from these Maryland replacement windows experts)

• Minor Kitchen Remodel:

Avg. Cost = $18,000 – Rate of Return = 86% – Value at Sale = $15,480

• Siding Replacement:

Avg. Cost = $9,500 – Rate of Return = 87% – Value at Sale – $8,265

Keep in mind these are averages and will be different based on the materials used and the styles incorporated. If you’re going for maximum return, keep your designs fairly neutral. You can add your personal style or flair by using accessories, pillows, art, etc, but you’ll want your over all design to appeal to as many buyers as possible to increase the resale value.