What type of payback can I expect on my South Orange County home improvement project?

Posted by BanCorp Properties on Tuesday, November 18th, 2014 at 10:00am.

 

 

 


Which types of home improvements give the best type of return on your Orange County home?

If you are considering upgrading or remodeling your kitchen, or possibly adding designer windows or plantation shutters, undoubtedly you want to get your investment back if you plan on selling your home in the near to short term. When it comes to home improvements in South Orange County, some are certainly more profitable than others as it relates to getting your money back. As you will see below, kitchen and bathroom projects will normally get most of your money back when you sell your home, room additions and pools don’t do so well…

There are a numerous variables that determine how well a project will pay back. Much of the value depends on the current market conditions in your South Orange County community. If the market is sizzling and homes are selling quickly, obviously you would expect a higher return on your than you would secure in a otherwise slower market.  

The scope, size and type of South Orange County home improvement project you complete and how it conforms to other homes in the neighborhood can have an enormous influence on payback too. If you put your money into the wrong type of improvement (such as over improvement), you simply won’t get your money back. But if you're intelligent and savvy about what you do, you can make get a majority of your money back. The payback will be better on improvements that are in demand and conform to neighborhood standards. Adding a third bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment.  Building a large addition that makes your home twice as big as the other homes on the block probably won’t pay back very well. Likewise, the popularity of a project will factor into how much it pays back. An improvement heavily customized to your wants and needs won’t pay back as well as something more common to other homes in the neighborhood.

Another factor to consider is the cost of the improvements. If you can do the work yourself, you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment. However, if you aren’t skilled at home improvements and the work is shoddy – don’t expect any return or payback on your investment. The people who are buying the South Orange County homes for sale are sophisticated and they won’t miss something like this.

The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:


  • Kitchen remodeling – 90%

  • Bathroom Addition – 90%

  • Bathroom remodeling – 80%

  • Install central heating – 90%

  • Install central air – 75%

  • Add a deck – 70%

  • Replace windows – 70%

  • Room Addition – 55%

  • Build a pool – 45%

 

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