The REAL Cost of Home Renovations in Memphis

If you are considering owning or selling a home in Memphis, you know that the transaction is only a small step. A huge part of upping the value of your home comes in the refurbishment and refinishing of old fixtures and appliances. This can add a considerable amount to the selling price of your home, or make that asking price look much more appropriate. However, should you want to do something more extravagant to your property—a “renovation”, if you will—then it might be good practice to be aware of how much your renovations really cost and how much they will add to your home.

In a recent study by the National Association of Realtors (NAR), the cost of home renovations was measured up to their respective return values. Unfortunately, on average, a typical renovation that might cost somewhere near $30,000 will only return approximately 63.8% of it’s cost, meaning that there’s a margin of loss around $10,860. That’s quite a loss to cut. What’s worse is that in the four years that the NAR have been conducting this study, the average percentage of returns has steadily dropped.

This creates the importance of choice. When considering renovations on your home to improve its selling cost, it’s crucial that you deliberate exactly what you are going to do, and how that will improve your financial situation. For instance, according to a’s Les Christie, the most cost effective jobs are not kitchen or bathroom renovations (in fact, those are the least cost effective), but “smaller-scale, lower-cost renovations that improve the exterior appearance of homes”. Effecting buyers’ first impressions will have an immediate impact upon their considerations for your asking price. These renovations, such as adding vinyl siding to the exterior, or replacement with fiber-cement are cheaper and, on average, have somewhere near an 80% return. Not a complete return, but a considerable more than 2009’s average.

This decision becomes even more important if the seller is looking to sell right away. Those low-cost renovations that have higher returns will be your best financial bet to beef up your selling price without wasting time and money on a renovation that won’t give back. Of course, if you are hedging your bets for a future sale, you can look at it like you're getting a $50,000 renovation for less than half the cost.

Renovation and maintenance is a tricky thing. You should only trust the professionals when spending money to make modest improvements on your home. Consider Service Master by Capital Construction when attempting a renovation so you get the most bang for your buck.