Vanguard Realty Associates

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5 worst home projects for the money

Filed under Home Tips, Renovations, Selling a home on Feb 21,2013 | Tagged in: , , , , , ,

Every year, Remodeling Magazine looks at the hottest home upgrades and renovations and calculates just how much owners get back when they sell.

Upkeep is more popular than upgrades these days, says editorial director for Remodeling. These are the projects that often recoup the biggest slice of expenses at resale. But prices and returns do vary regionally.

Ever wonder what brings the lowest return when you plant that “For Sale” sign? Think high-dollar, high-end and highly personalized add-ons that make you drool. Like a totally tricked out garage built from ground up. Or a super luxurious master suite addition. Or the home office redo designed just for you.

Here are six improvements that, in their 2010 report, ranked dead last nationally when it comes to getting those renovation dollars back at resale

1. Home office remodel – The standard home office renovation, complete with plenty of built-ins storage and high-tech wiring- is this year’s biggest loser in the resale value sweepstakes. Homeowners spent an average of $29,000 and can expect to recoup 45.8 percent at resale, according to the report. When selling refer to the room as a study, den or hobby room.

2. Back up Generator – On an average when homeowners have a heavy duty backup power generator installed, they spend about $15,000, according to the report. Average amount of the price recovered at resale time 48.5 percent.

3. Sun Room – While it seems simple enough the national average for a sunroom addition is $75,000 according to the report. Homeowners can expect to recoup about 48.6 percent when they sell. It doesn’t mean that a sunroom is a bad idea. If your home needs another common area a sunroom could be the answer. An addition is best considered in the context of the whole home.

4. Master Suite- Who doesn’t want to wake up in a five-star-hotel-quality suite with an attached spa bathroom and a kitchenette that affords you coffee and pastries before facing the world. For a super-deluxe master suite addition-which adds square footage and uses only top dollar materials – the average cost is about $232,000. Your buyer can purchase a newer home with the same features as part of the original floor plan the “probably lays out better anyway”. So while the next buyer may appreciate your luxury accommodations, changes are they won’t want to pay the full tab for your remodel.

5. Garage – Instead of cleaning out the garage, how much would you pay to have a new one built from scratch? This time, it would have all the organizational built-ins, and a durable, easy-to-clean floor to ensure it would never be messy again and windows for natural light. The price tag for a top-of-line detached two car with all the trimmings is about $90,053. You can expect about 53.6 percent of that when you sell. You have small target audience, out there that wants an upscale garage.

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