ROI, the acronym for “return on investment,” asks the question, ‘What kind of financial return might I expect on my sunroom, three seasons room, outdoor kitchen, or any outdoor building project or addition? A fair question with some surprising answers.
Most homeowners don’t invest in exterior building projects only for the ROI; they’re looking for the outdoor lifestyle with indoor creature comforts that only sun rooms, screen porches and three seasons rooms can provide, but it’s nice to know what kind of returns are possible and typical. Of course the real estate market swings (don’t we all know that all too well?), but traditionally a significant construction investment, like the type Carolina Home Exteriors provides for many hundreds of satisfied customers every year, will increase the value of your home, even possibly paying for itself over time.
The industry carefully and honestly studies and reports on ROI to help homeowners make solid, informed buying decisions. Here’s some of what they’ve found.
Quite simply, in most cases, greater Myrtle Beach sunrooms add value to a home.
It’s been estimated that up to 80% of the investment of a sunroom might be realized within a short period of time. A Four Seasons room, one that can add square footage to your home, and show on your property deed, absolutely increases the value. A sunroom that can be seen from the road can add significantly to the curb appeal as well.
In Myrtle Beach, it may make sense to add a Three Seasons Room, because of the more moderate temperatures in the region. However, if you plan to use your new addition regularly in the coldest and hottest months of the year, a Four Season’s room might make more sense, and deliver a stronger ROI. Carolina Home Exteriors, a fully licensed sunroom contractor and homebuilder, can help you through the steps to make that all-important decision.
Because sunrooms, especially Myrtle Beach Sun Rooms, rank among the top home improvement projects for area homeowners, it’s good to know how much to spend vs. how much return you might expect should you sell your home or wish to use its equity. Industry leaders, realtors and appraisers report that between 70% – 100% of the costs can be realized in a resale environment. Many factors including the overall economy, the real estate market, the neighborhood, and a dozen other considerations all must be factored in.
Not All Sunrooms are Created Equally
The overall quality and workmanship that goes into the sunroom project may be the greatest determining factor in your expected ROI. This is where Carolina Home Exteriors shines and really makes the difference. The type of windows, HVAC, plumbing, electrical, the quality of the materials down to the studs and drywall, are all-important in maximizing your ROI.
Myrtle Beach Sunrooms and Three Seasons Rooms can vary dramatically in cost; the size of the new addition being the single largest factor. Other issues such as any needed demolition, the pouring of a new foundation (or increasing the existing foundation’s size), plus the number and type of windows, skylights, specialty features and more all play in. So determining a hard ROI is not usually possible, but know that a significant portion of your investment will grow with the value of your home, as long as the right sunroom contractor does the work.
Appraising the Possibilities
Area appraisers have some good advice in maximizing your Myrtle Beach Sun Room ROI. They say the new addition should “be equal to” and “match” or be “better” than the existing improvements. This includes matching paint, drywall, siding, brick (if applicable), insulation and HVAC. The foundation should be level with the adjacent entry when possible. Maximizing ROI means paying careful attention to new construction that is “equal too” or “better than” the existing living areas. Some homeowners actually opt to pay an appraiser the $350-$500 to help determine the best type of sunroom or exterior addition. (TED, strike that last sentence if you don’t like it or don’t want to suggest involving appraisers, which you may not!)
Over Improving and ROI
The Appraisers say it’s also important to understand that adding a 50k sun room to a 200k home in a neighborhood of modest homes without many or any sunrooms, may not create a strong ROI. That doesn’t mean you shouldn’t do it, of course, because if you plan on long term use of the addition, love your home and neighborhood, and can afford the improvement, by all means build your castle!
Most of the experts agree; remodel for your needs, not for resale.
For almost 40 years Carolina Home Exteriors has been helping area homeowners realize their dreams. Let us provide you with a free, no obligation estimate, and help you realize your coastal living dreams, too.