Smaller, Thoughtful Updates the Winners!
Figuring out how to spend your limited home renovation dollars is always a challenge. Should I make just cosmetic changes? Should I try to make the house appeal to a certain generation? What will provide the best return on investment?
Look to the 2017/18 Remodeling Cost vs. Value report for answers.
Remodeling magazine’s annual report estimates the cost of 29 home improvement projects and how much homeowners could anticipate recouping on a renovation when they sell.
This year, homeowners focused on smaller updates, and a more cautious approach, resulting in a return on investment (64.3 cents for every remodeling dollar spent) that is less than 1 cent different from last year. This is a solid result that makes it clear that the recession is behind us and both buyers and sellers are interested in meaningful updates without going overboard.
One project stood out (as it did last year) for returning a higher value than its cost: Loose-fill insulation in an attic. This modest investment returned 107.7% of the cost of installation. A steel exterior door replacement says security and curb appeal, and that update returned 90.7%. Adding curb appeal with stone veneer was a close third, at 89.4%.
Lower in terms of the percentage of return, but increasing about 5-7% in return value over last year are the luxury bath remodel, luxury master suite remodel, adding a second story, and adding a family room. While the cost of materials increased, the housing market is strong, which helps boost returns.
Some results are location oriented. Coastal regions which see a higher rate of hurricane and tropical storm activity show a higher return for backup power generators than do the land-locked states.
A universal bath remodel, with widened doors, grab bars, and wheelchair accessible sink had a better rate of return than a mid-range cosmetic bath remodel. The aging population is helping to boost interest in universal remodels and updates.
To sum it up, this year the best choices for return on investment for every remodelling dollar spent were smaller projects based on quality of life and curb appeal. And finally, always choose your remodeling projects by whether they will help you enjoy your home more or improve your quality of life in your home!