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All Remodels Great And Small:
Recouping Costs When You Sell
“But is it
worth it to remodel?”
That’s the
question everyone asks when they’re considering whether or not to lay
out the cash for a home remodeling project. With housing prices and
housing values continuing to rise (albeit at a slower pace than in
recent years), making upgrades to your house may seem like a quality
investment at first glance.
Unfortunately, that’s not always the case.
According to
Remodel Magazine’s annual “Cost vs. Value” comparison (see
chart below), many remodeling projects won’t add extra value or
even equal value to a home. For example, if you do a major kitchen
remodel—traditionally considered to be an excellent investment—you may
recoup only 90 percent of your cost when you sell your home. Other
projects, such as remodeling a home office, have less of a return.
Does this
mean that remodeling is never a good option? Of course not.
Even if a remodel doesn’t get you a 100 percent return on your
investment, all projects will have aesthetic value to you as the
homeowner.
Also, keep in mind that these figures represent the
national average and are based on mid-range remodels (price-wise), so
your true percentage may vary depending upon several factors including
your neighborhood, type of house you own, area of the country, and
actual cost of the remodeling project. ∆
|
Project |
Job Cost |
Value at sale |
% Cost Recovered |
|
Bathroom Remodel
|
$10,499 |
$10,727 |
102.2% |
|
Minor Kitchen Remodel |
$14,913 |
$14,691 |
98.5% |
|
Siding Replacement
|
$7,239 |
$6,914 |
95.5% |
|
Two-Story Addition
|
$80,133 |
$75,831 |
94.6% |
|
Major Kitchen Remodel |
$43,862 |
$39,920 |
91.0% |
|
Deck |
$11,294 |
$10,196 |
90.3% |
|
Basement Remodel |
$51,051 |
$46,010 |
90.1% |
|
Window Replacement |
$9,684 |
$8,681 |
89.6% |
|
Bathroom Addition |
$22,977 |
$19,850 |
86.4% |
|
Roofing Replacement |
$11,164 |
$9,456 |
84.7% |
|
Family Room Remodel |
$54,773 |
$45,458 |
83.0% |
|
Master Suite Remodel |
$73,370 |
$60,460 |
82.4% |
|
Home Office Remodel |
$13,143 |
$9,569 |
72.8% |
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COPYRIGHT 2006 REMODELING ONLINE,
COST VS. VALUE (2005 NATIONAL AVERAGES) |
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