Closing is one of the most exciting days of the custom home building process! You're finally able to call the house you watched grow from dream to reality home. Prospective clients often ask us how they can avoid a double move when selling their house and building a custom home.
The first thing we tell them is it comes down to the financing and lending terms they have for their construction loans, which is why we encourage getting in contact with a preferred lender or reaching out to one of our construction lending partners early in the process.
If you are approved for both two homes, then avoiding two moves means taking as many steps as you can to help your current house move quickly on the housing market. The faster your house sells, the higher the value but that isn't the only advantage. Many times, a faster sale means more flexible closing terms and the ability to time your move according to your construction schedule. That is why we recommend preparing your current house for sale while finalizing the design and selecting the finishes on your custom home.
When preparing your house to go on the market, it is always a good idea to do a walk of each room and fix those small inconvenient items that you've learned to live with, replacing screws or patching chips in the baseboards. There are also some larger projects you can take on to increase the value of your home before selling it, and luckily you don't have to guess when it comes to planning where you should invest in larger projects to increase your home's value.
Remodeling Magazine publishes an annual Remodeling Cost vs. Value Report with the most current averages for cost and the return on investment (ROI) for popular home renovation projects. The report also shows a breakdown of what percentage of costs you'll recoup from a project so you can easily plan the projects that will increase the value of your home.
The costs and values in the report are calculated on national and regional levels and are further broken down by individual cities. We've compiled a list of the best exterior and interior projects to increase your home's resale value in 2020, according to the 2020 Remodeling Cost vs. Value Report. Check them out below!
Exterior Improvements
Often heralded as one of the top-selling points of a home, your home's curb appeal is the first impression your home makes. So, ensuring your home's exterior is in tip-top shape is essential to improving its resale value. According to the Remodeling 2020 Cost Vs. Value Report, the following are the top five exterior improvement projects that boost a St Louis home's value.
- Garage Door Replacement - 85.5% of cost recouped
- Building a Wood Deck - 79.4% of cost recouped
- Building a Composite Deck - 73.1% of cost recouped
- Siding Replacement - 70.9% of cost recouped
- Wood Window Replacement - 68.8% of cost recouped
Honorable Mention: Vinyl Window Replacement - 68.1% of cost recouped
Interior Improvements
Interior improvements will also increase the value of your home if you are eager to sell. Here are the top four interior renovations most likely to increase your home's resale value according to the 2020 Cost Vs. Value Report.
- Kitchen Remodel (average of major and minor renovations) - 58.7% of cost recouped
- Bath Remodel (average of major and minor renovations) - 50.6% of cost recouped
- Bathroom Addition (an average of midrange and upscale design) - 50.2% of cost recouped
- Primary Suite Addition (an average of midrange and upscale design) - 43.65% of cost recouped
While these numbers vary across the country and even throughout the region, the data shows interesting trends that impact both buyers and sellers. A close inspection of the Remodeling 2020 Cost Vs. Value Report can be helpful in determining the next steps for when selling your current home and trying to avoid a double move. Choosing the right remodeling project for your home will go along way in increasing its resale value.