John Fraker: (00:06)
Hey, everyone. This is John Fraker with Keller Williams Bay Area Estates. Today we’re going to be talking about a very important topic for homeowners, that is ROI on your favorite projects on your house. Now, obviously, home renovation and remodeling projects are very expensive and they can take a long time and cause a lot chaos in your life. So, if you’re gonna spend all time and money upgrading your house, you want to know you’re gonna get the most bang for your buck.
John Fraker: (00:28)
So today I’m happy to share with you some stats from Remodeling Magazine focused here on Silicon Valley housing. These are the projects that will actually return you the most bang for your buck in terms of what you invest and what you get back when you go to sell your house. So we talk about garage door replacement. That’s an extremely popular add-on here in Silicon Valley. You can actually expect to return up to 208%. From the money that you spend, you’re gonna get back at least 208% on your investment when it comes time to sell. Also, a minor kitchen remodel you can get up to 147%. And a deck addition made of wood in your backyard can get you up to 146%. So these are amazing projects that you can do that will actually give you the most bang for your buck.
John Fraker: (01:17)
On the other side, there area a lot of projects that people think will return them value when they go to sell their house that actually don’t do that here in the Bay Area. So these are the three projects where you can expect to get the least bang for your buck. Uh, a backyard patio. People think that if they have a really amazing backyard patio and spend a ton of money there that they’re gonna recoup that cost on the sale price. Here in the Bay Area that’s not always the case. You can expect to return up to 79% of your investment. Obviously that’s a lot lower. With a major kitchen remodel at the high luxury end you think, hey, wow, I have this really amazing kitchen, buyers are gonna throw a lot money at it. Not necessarily the case. People are only getting 85% on their investment. And a master suit addition on the upscale side, you’re only gonna net about 82% ROI on the amount of money that you invest.
John Fraker: (02:12)
So, obviously, if you’re trying to choose a project for improving the value of your house when you go to sell, these are the projects you want to focus on and you want to stay away from other projects where your ROI is not as great. Now, obviously, these statistics are local here to the Bay Area, to Silicon Valley, San Jose area specifically. If you want I will post a link here on my website to the full, uh, research projects so you can type in your location and see what the averages are for your area.
John Fraker: (02:38)
Anyhow, this is John Fraker with Keller Area Bay Area Estates. Have a great day.