Are you planning to remodel or update your home? If you are remodeling for your own enjoyment of your home and plan to stay there for more than five years, do what suits you best. If you are remodeling because you’re selling your home, or if you know you’ll put your home on the market within a few years, look carefully at your return on investment (ROI) for your planned project. You may decide to skip the extra half-bath (ROI 56%) and instead plan a minor kitchen remodel (ROI 75%) and replacement garage door (ROI 76%) for less than half the cost of that bathroom. You’ll get more of your money back when you sell, and you’ll enjoy your updated kitchen and garage door while you still live in your home!
Remodeling for Returns
By Elyse Umlauf-Garneau
So you’ve saved up a little pot of money for rehab costs either to make your house more comfortable or to put it on the market.
Especially if you’re renovating to sell, take a look at Remodeling Magazine’s “Remodeling 2012-13 Cost vs. Value Report” (www.costvsvalue.com) before you make any project decisions.
The annual survey measures home remodeling projects’ return on investment.
You probably already know that sinking money into an Olympic-sized pool likely isn’t a wise move. But did you know that you could spend an estimated $1,137 on a new steel entry door and potentially see an 85.6 percent return on investment (ROI) when you sell? That’s one of the findings from this year’s report.
Regional data part of the mix
Keep in mind that real estate is local. Thus, the cost of renovation projects in your neighborhood could vary and so can the returns.
The report accounts for such differences by offering data for nine different regions and it allows you to look at costs and returns for major cities in each region.
In addition, a data comparison tool lets you make an array of comparisons, such as how this year’s figures compare to those of previous years or how the ROI on a deck replacement done in Chicago differs from one completed in San Francisco.
Here are some of the study’s key ROI findings for midrange projects:
Deck addition (wood)
Job cost: $9,327
Garage door replacement
Job cost: $1,496
Minor kitchen remodel
Window replacement (wood)
If you’re considering more costly, upscale remodels, here’s some insight to weigh:
Major kitchen remodel
Job cost: $107,406
Job cost: $70,969
Job cost: $50,007
Job cost: $33,880
Factor in your personal enjoyment
As you’re scanning the lists and making decisions, don’t let just costs and ROI influence you, especially if you’re planning to remain in your house. For your own comfort, also consider aging-in-place modifications that will help you stay in your home longer and live there safely.
After all, there’s something to be said about the enjoyment you’ll gain from the upgrades you do.
For instance, just consider the increased comfort and energy savings you’ll derive from new windows, the safety boost you’ll gain by installing a curbless shower stall, or the pleasures you’ll gain from a deck during the summer.