Before asking which home improvements will bring back the best resale value, we should discuss two things: 1) the ROI for any project can vary greatly in different cities across the country, and 2) there’s a big difference between ROI in terms of percentage and in terms of actual dollar value.
Many lists of home improvements with the best return on investment will tout the benefits of painting the front door or painting your siding. That’s because these small projects can fetch a 200% return in resale value. If you want a greater increase in your home’s value, however, you do need to think bigger.
Statistics and advice from magazines and television shows also speak to a national audience. But you know that San Francisco has a very different housing market than Cincinnati or Atlanta. Home improvements that are popular in one region of the country may not even be relevant in the Bay Area.
Certain home improvements in San Francisco can turn even a modest home into an extremely high-value property. The local market rewards home improvements that significantly upgrade the critical areas of the home: the kitchen, bathrooms, and living areas.
Major and Minor Kitchen Remodeling
This project never fails, especially for kitchens that are difficult to use or outdated. By minor kitchen remodel, we mean a complete face-lift and update as opposed to a gut reno. Major kitchen remodeling may include changing everything, including relocating all the plumbing.
Mid-range home improvements tend to recoup even more money, with the exception of high-end neighborhoods where buyers will expect only the best. Upscale changes recoup around 90% of the cost in San Francisco — outpacing virtually anywhere else in the country — so if you’re not about to sell in the next few months, feel free to splurge.
Bathroom Renovations
Bathroom additions and remodels tend to break even or better. A much-needed bathroom remodel using quality materials and labor can easily net a positive ROI.
Start these home improvements with the master bathroom, but consider updating all at once if the budget permits. Powder room additions and guest bath remodels are also major selling points.
Living Room Additions and Attic or Basement Remodeling
Living spaces can be created without altering the footprint or building up, or you can swing for a full-fledged home addition. And appraisals and buyers will reward the effort.
This isn’t Manhattan where splitting up tiny bedrooms increases the value. People want spacious living rooms and areas for entertaining. Whether that means opening a kitchen or knocking out the wall of an unused home office, this is one of those significant home improvements that can really alter the home value and place it among different comps.
An unfinished attic or basement, or one currently used for storage, is your next place to look. With proper windows, HVAC, and nice finishes, people are more apt to place high value on these spaces than ever.
High ROI Home Improvements in the San Francisco Area
Other popular home improvements in Northern California include deck additions, garage additions, window replacements, and exterior renovations such as stone accents. Take a look at the “stretch” comparables in your neighborhood to see what others have been adding and renovating, and think hard about the home improvements you really need.
Of course, the best ROI for home improvements comes from work done by professionals, using smart designs and building with skilled labor. Those DIY projects can reduce upfront costs, but may also limit the return. Contact Mcneil Construction for more details.