Tuesday, July 6, 2010

What will produce my best ROI?

ROI(Return on Investment) is one of the smartest tools to use when spending money on making upgrade choices.

When considering the resale of your home, consider which area to invest money in your home to be sure you will get your money back. Since upgrades can make a substantial difference in the value of your home, these are important decisions!

Remember that while some home upgrades might improve your quality of life, they might not increase the value of your home.

Sometimes the answer is easy. Choices such as upgraded kitchens and bathrooms are the most appealing to potential purchasers, as they tend to be large and expensive renovations. These additions make your home attractive and worth more to the potential buyer. Painting and floor finishings almost always give a good ROI assuming that they are of a current style.

On the reverse side, some upgrades and home improvements offer bad return on investment. In this category we find upgrades that are valuable to the current owners but not seen as attractive to the potential buyer. Very strongly colored tiles in bathrooms or kitchens, swimming pools, wine cellars, dance floors, expensive build-in entertainment centers, outdoor hot tubs and elaborate basement bars are all examples of home improvements that will probably not appeal to everyone and will likely not pay back as well.

Expected range of return on your upgrade to your home:
Bathroom Renovation - 75-100%
Kitchen Renovation - 75-100%
Exterior Paint - 50-100%
Interior Paint - 50-100%
Roof Shingle Upgrade - 50-80%
Basement Finishing - 50-75%
Recreation Room Project - 50-75%
Fireplace - 50-75%
Flooring Upgrade - 50-85%
Furnace/Heating System Upgrade - 50-80%
Window/Door Upgrade - 50-75%
Extra Garage - 50-75%
Air Conditioning - 25-75%
Fence - 25-50%
Interlocking Paving - 25-50%
Landscaping - 25-50%
Asphalt Paving - 20-50%
Swimming Pool - 10-40%
Skylight - 0-25%

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