Deciding What Improvements to Make

As a Handyman, I am often asked by clients, "If I do this project, how much will it increase the value of my home?" Fair question, but like most questions, the answer can be vague and inaccurate if not taken in a larger context. For example, you have decided to update that 20 year old master bathroom... good for you... someone like me throws the number 75% at you, meaning you will get back 75% of your investment upon resale of your home. Not bad you say, and it's not. However, what you didn't realize going in to this project, is that you already have the most expensive home in the entire neighborhood and upon resale you discover you only got 10% and you determine the Handyman sold you a bill of goods. Take this same project and put it into the least expensive home in the neighborhood and suddenly everyone is slapping backs and kissing babies when we get a bump of 110%

Another question to consider when determining the actual value of any home improvement is, "Would an average purchaser of this type of home complete this improvement upon buying my property, if it did not already exist?" If the answer is yes, then the improvement you are considering is likely to return it's full cost, or possibly even more in added value to the property. If the answer is clearly no, then you are more likely to experience only a minimal increase in your property's value as a result of the improvement. My advice to all homeowners is, have your home appraised by a reputable real-estate agent before starting improvements. Find out what the house is worth in its present condition. Then, and this is the critical task, find out how your house compares with current homes in your neighborhood. If you are already at the top of the pricing market, think carefully before making splashy improvements. In any event, once you have your current selling price, you need to determine what improvements are being made to your neighbors homes. Are they all sick of their dated master baths or are you the only one thinking that way.

Once you have settled on what type of improvement to go ahead with, MAKE A BUDGET. In case that wasn't clear... MAKE A BUDGET! Then compare the planned budget with the expected bump in resale and see if that works for you. Then and only then, call in the professionals you will require to construct your project, clearly explain your goals and budget, and clearly understand what each contractor or Handyman will be doing to accomplish the project. Once all is in place, happy remodeling! Once the project has been successfully completed it's time to bring your real-estate agent back for another appraisal and get a new snapshot of your houses current value. In my experience, doing these steps per project will produce the best payoff for you the homeowner. I've seen many homeowners remodel a whole house only to be surprised that they didn't raise the value of the home as they had hoped because they did too many projects and out stripped the neighborhood value. By taking the time to understand what the neighborhood can sustain you can decide what projects and how many to do to reach that sweet spot. But this can only be accomplished with minding the budget and being creative in maximizing those finances you have to accomplish those tasks.

That said, the following list contains many items seen as improvements and their associated values are the average one should expect when starting their due diligence journey.

Interior Paint 70% - 300%
Exterior Paint 70% - 300%
New Flooring 50% - 300%
Kitchen Renovation 75%
Bathroom Renovation 75%
Addition to Existing Home 40% - 60%
Basement Development 55%
Landscaping Improvements 50%
Underground Sprinklers 50%
Patio or Deck 50%
New Windows 30%
New Exterior Siding 65%
New Heating System 45%
New Central Air Conditioning 50%
Built-in Dishwasher 75%
Fireplace 65%
Central Vac System 60%
Water Softener 35%
Energy Efficiency Features 30%
Swimming Pool 25% - 50%
Garage 75% - 100%

It should be noted that the potential return on investment for these features would be determined by the actual need for such an improvement in the subject property. For example, new flooring will add more value to a home that presently has badly worn or dated flooring. If you are simply replacing it because you don't care for the "trendy" color that you presently have, the return will be minimized. These noted improvements are often worth completing for re-sale. A freshly decorated home will sell much faster than one that is dated and showing wear. Additionally, certain features may add more value in some geographic areas. For example, a swimming pool delivers a small return in Green Bay where the swimming season is short. In Florida, a pool would likely deliver a better return.

The Handy Dad- Serving the Greater Orlando, Florida area with a full range of handyman services http://www.thehandydad.net/