South Jersey Real Estate Investors Association

Will home improvements add value to my property?🏡

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    Determining whether a home improvement adds value to your home can be tricky. Some factors are tangible - like the cost of making the update - while other factors are less tangible and harder to quantify, like the improved quality of life the change brings.

    When making a dollars and cents evaluation, first consider all costs involved: materials, labor, building plans, building permits and any changes to your homeowner's insurance. Then, consider how these upgrades will impact your home's worth. Not all home improvements add value - some can even decrease it!

    Remember, your return on investment varies as the real estate market changes, and the value of a home is not always reflected by the selling price.

    Remodeling evaluated several home improvements in their annual Cost vs. Value Report. This report analyzes the percentage of cost returned for a home improvement when comparing cost to construct versus added resale value. Of the 30 home improvements evaluated in the 2016 report, only fiberglass attic insulation had a positive return.

    Check out the entire list for your region here. Evaluations were conducted in a "seller's market."

    Improvements with returns above 90% in 2016 included:
    Fiberglass attic insulation: 116.9%
    Manufactured stone veneer: 92.9%
    Garage door replacement: 91.5%
    Steel entry door replacement: 91.1%

    I hope this information is helpful to you and if you ever have the need for a home appraisal, I hope that you'll keep me in mind.

    Cardwell Thaxton, New Jersey
    Tight & Right Real Estate Valuation
    📲(908) 456-1593
    📧CardwellThaxton@gmail.com

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