Most of homes in Palo Alto are at least 50 years old. For the owners there always comes time to remodel and to upgrade their homes. Our clients often invite us to discuss the scope of their project and to help them estimate how these new upgrades will affect the market value of their homes.
According to the Remodeling 2013 Cost vs. Value Report (www.costvsvalue.com) replacement projects provide the home owners with the highest home value improvements when compared with additions. Midgrade finished are also paying off better than upscale upgrades.
A “minor kitchen remodel” (replacing cabinets fronts, countertops, cabinet hardware, and appliances with no structural or system modifications) will provide you with 128.8 percent return. Entry door and garage door replacement will allow you to recoup 130.6 and 122.7 percent of the cost respectively.
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Replacing your window with new vinyl energy efficient windows will bring you 108.5 percent return. Front door replacement is the most cost-effective upgrade you can do to your house.
Out of the additions, building a wood deck will give you the best bang for you buck. It is estimated that you can recoup 128.9 percent of the construction cost. Adding a new master suite will get you 89.8 percent in case of sale.
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A new sunroom will increase the value of your home only by 60.2 percent of the cost of the project, a family room addition — by 91.9 percent. Emergency preparedness upgrades are undervalued by the buyers. Installing a backup generator is the second least cost-effective project with 60.8 percent return.
Overall, in our area 12 out of 22 projects detailed in the report will pay for themselves in case of resale significantly outperforming national averages. The recent explosion of home values and shortage of housing in Bay Area make most of home improvement projects a winning proposition.
