How Much Value Does A Remodel Add?
Want to install a new entry door? Well, do it and you’ll get your money back—and more– when you sell. How about adding a sunroom? Well, make that particular home improvement and you’ll get burned at re-sale—you’ll be lucky to get back even half of your investment.
Every year the Cost vs. Value report is released by Remodeling Magazine. It’s a U.S. remodeling industry survey that compares changes in job costs with Realtors perceptions of what those jobs bring to a home’s price at resale. And while not every remodeling job should be started with the sole goal of improving a homes’ resale value– until we find that particular species of money tree—we all need to pay heed to the bottom line.
And where you live makes a difference in your home’s cost/value ratio. If you are so lucky to live in the Pacific Northwest you are living in the highest cost-value ratio in the nation’s nine census divisions. In fact, projects in the five states bordering the Pacific Ocean had an average payback of 74% in resale value. By contrast, the Mid-Atlantic States are closer to 47%. What a contrast!
Besides a new entry door, another big winner in the CVV Report is a mid-range Attic Bedroom addition, which has a rate of return of 103%.
And, a minor kitchen remodel—also called a “spiff”—is a great way to bring value to your home. In the Portland area such a project brings a 94 % return.
Here’s the list of Cost v. Value report for the Portland area:
What’s not mentioned in the survey is the intangible effect of a new kitchen, bathroom, or whole house remodel, especially for folks who plan on spending a number of years in their home. If you can make the space your space…and a space you love to spend time in…that certainly has value as well.
Not sure what remodeling projects will work for you? Neil Kelly Designers can help you decide what renovations are worth the time and the money. And the best part, to sit down and go over your home improvements won’t cost you one, thin, dime.
How’s that for a return on your investment?
Article wrriten by: Neil Kelly