It may be easier to recoup some remodeling costs on your home than others.
If you plan to live in your home for years, then you’ll enjoy a remodeled kitchen or bathroom. But if you’re doing it to help raise the selling price of your home, you may want to consider the following.
Of the 30 most popular remodeling projects that retain value at resale, only one — attic insulation — averaged a high enough cost being recouped to pay for itself and adding to a home resale’s value, according to a report by Remodeling Magazine.
But some home improvements are more worthwhile than others when it comes to recouping their costs in resale value. Adding fiberglass insulation was the only project to more than pay for itself, with a 116 percent return when spending $1,268 for a job that would add $1,482 to the home’s resale value.
After that, the highest percentage of a project’s cost being recouped was 92 percent for manufactured stone veneer.
Midrange price projects added more value than upscale projects. Here are some of the best values. All the numbers are for national averages:
Garage door replacement: 91 percent. The average cost was $1,652 for a midrange door. An upscale one had a 90 percent return and cost $3,140. An entry door replacement made of steel also had a 91 percent return, costing $1,335.
Kitchen remodel: 83 percent. For a midrange project, a minor kitchen remodel cost $20,122 and had a good return of 83 percent, while a major remodel cost $60,000 and had a 65 percent return.
For an upscale major kitchen overhaul, the cost was $120,000 and had a 61 percent return.
Bathroom remodel: 65 percent. For a midrange project, a bathroom remodel recouped more of its cost than a bathroom addition — 65 percent for the remodel vs. 56 percent for an addition. And it was cheaper too: $18,000 instead of $42,000 for an addition.
For an upscale bathroom, the amount recouped was less, though about the same for a remodel or addition.
An upscale bathroom remodel added 57 percent value, compared to 56 percent for an addition, though a remodel was a lot less expensive — $57,000 vs. $79,000 for an addition.
The Remodeling Magazine data also digs down into resale values of 100 U.S. markets. Along with the national data, it looks at regional and city figures, which may be worth a look if you’re trying to get an idea of what a remodeling project costs in your area.
I hope you found this information helpful. Contact me for your real estate needs today!