MarketWatch reporter Daniel Goldstein investigates the latest Cost. vs. Value report, Remodeling Magazine, to see how much money you and your clients should really be investing into a renovation. According to the report, the average cost and average return for the 30 projects researched resulted in an average of just over 64% of a project’s investment dollars getting recouped if the home is sold within a year.
So which home renovations will actually be worthwhile? Turns out, you and your clients don’t need to spend a lot to get a lot back. Goldstein writes:
For example, in 2016, the best remodeling project on a cost/value basis will be adding fiberglass insulation into an attic. On average, the magazine said that the project would cost an average $1,268 nationwide but would increase a home’s retail value by an average of $1,482, or a recoupment cost-to-value ratio of nearly 117% , meaning when you sold your home, you’d recover all your costs and make a double digit percentage profit as well.
For key trends check out the 2016 Cost vs. Value research.