This is something I am asked frequently by my former clients, “How much can I expect to get on a return for my investment if I remodel our bathroom or add plantation blinds or covered patio area?”. The answer isn’t always cut in stone but is most always less than you would expect. A simplified formula however is to 1st check with your local Realtor and ask them to run a quick report to determine the most recent highest sold comp within your neighborhood. Then multiply 9% from this number and subtract that amount from total sold price (this is for holdback on marketing costs to sell). Take then the remaining amount & subtract your current estimated payoff if you have a mortgage or property liens and what is left over will be the absolute max amount of equity you could have in your home NO MATTER how much money you chose to spend on an improvement. This would also include any equity you have in home currently but does not reflect actual equity for that is determined by a different method. But this is a good way to determine how much in equity would you have to spend and NOT go over what your current neighborhood will allow.
Here is an current article on a study done in our region that may surprise you about what improvements are giving the most on an ROI…