Appraisal Institute: Smaller Renovation Projects Fuel Bigger ROI
April 19, 2017
When it comes to property renovations as a tool to increase sale value, the Appraisal Institute is recommending that homeowners pursue smaller-scale projects in order to get the fullest potential return on investment (ROI).
Among the projects recommended by the trade group to fatten up the expected ROI are attic insulation (fiberglass), entry door replacement (steel), manufactured stone veneer and minor kitchen remodel. Garage door and siding replacements are also on the Appraisal Institute’s to-do list.
“The latest research shows that home improvements with a relatively low cost are most likely to generate a positive cost-to-value ratio,” said Appraisal Institute President Jim Amorin. “Spending big dollars on major renovations doesn’t necessarily equate to a dollar-for-dollar return. In short: cost doesn’t necessarily equal value. Projects that move a home well beyond community norms are typically not worth the cost when the owner sells the property.”
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