Denver homeowners remodel for many different reasons and may justify the expense as an “investment” that will be returned when the house is sold. This, however, does not always come to pass, especially if you do an “over-the-top” remodel.
If you’re planning a Denver home renovation or addition, here are the six projects that generally have the lowest return on investment when the home is sold.
Home Office – Studies show that a home office remodel has the lowest resale value of any project. The average cost for this upgrade is $28,888, but only 45.8 percent of that figure will be returned when the house sells.
If you do create office space in your home, make sure it can be easily changed back into a bedroom, den, or whatever else the space was used for. When selling, don’t call it an office; name it a den, study, or hobby room so potential buyers will see more possibilities in the space.
Generators – A high-quality back-up generator system can cost as much as $14,718 but returns only 48.5 percent of that amount at resale. Since not every Denver homebuyer will see the generator as a valuable option, go with a less expensive model that will meet your needs.
Adding a Sunroom – While this can be a way to add space to your home, it will take a huge bite out of your wallet. Sunroom additions on average cost $75,224 and return about 48.6 percent of cost when the home is sold. Do this only if it really improves the overall space and attractiveness of the home.
Adding a Bathroom – Expect to hand over about $21,695 to add a moderately equipped bathroom to your home and $40,710 for something more upscale. When you sell your Denver home, you’ll recover about 53 percent of either project. Most buyers don’t feel another bathroom is worth adding $20,000 to their offer. If you can reconfigure your existing space to add that second bathroom you’ll pay less and possibly recover more.
Garage Rebuild – A new detached two-car garage with lots of special amenities can set you back $90,053 and will return about 53.6 percent at resale. Most buyers will not really care about having a decked-out garage and so will not want to pay extra for it.
If you really feel that your home will benefit from a remodel—or if you just want to enjoy your home more—then go ahead. Just remember that not all renovations are equal in what they will return to you when you sell.
Let the Bandy team show you other ways to prepare your home and sell it quickly! We will guide you through all phases of the home buying and home selling process in Denver. We can also help you with home staging tips to help you get started. Our home purchasing experts can also help with buying a home in the Lowry area of Denver , real estate in Cherry Creek, or any of the other fine communities surrounding Denver. We are here to help you find your dream home and will guide you every step of the way!
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Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows
BandyTeam.com - Denver Real Estate & Homes
720-466-3790
