The following is an excerpt from Daniel Goldstein | February 26, 2016 | marketwatch.com |
In 2015 people spent a record $325 billion on upgrades to their homes, and it’s predicted by some that spending in 2016 will set yet another record. Here’s a look at which home-improvement projects add the most value to your home.
Remodeling Magazine recently compiled its annual predictions for remodeling values -- project-by-project and market-by-market -- for 2016. Call it MoneyBall for home improvement. The impressive sabermetrics-style compilation (the kind used statistical analysis to rate baseball players) looked at 30 projects and how they fared in more than 100 markets, to determine which ones get you the best value when you sell. It also looked at markets where the recoupment cost is highest, and where you probably shouldn’t even bother to do the work.
The average cost and average return at resale for the 30 projects in this year’s report resulted in an average of just over 64% of a project’s investment dollars getting recouped if the home is sold within a year. That’s up from 62% in the 2015 report and the second-highest return in the past eight years, the magazine said.
“Bigger and more expensive projects, rising new-home prices, curb appeal, and energy efficiency all contributed to a slight gain in remodeling projects’ payback at resale,” says Craig Webb, editor-in-chief of Remodeling Magazine, an industry trade publication, on the company’s blog.
For more visit: marketwatch.com