Cost Versus Value
Deciding whether or not to remodel involves a combination of fact finding and soul searching. As residential remodelers, we keep an eye on the cost of home improvement projects versus the increased value given to the home but that in itself is not enough data to help homeowners make a clear-cut decision.
Considerations for making the decision about remodeling your home include how long you plan to remain in your home, the long-term appeal that your location or land have for you, and whether or not the bones of the property are of more value you to you than the building itself. Many home owners are attached to a house and its setting for sentimental reasons. Others find that the location is ideal but are not so happy with the house itself. Some merely outgrown the home. Whatever the reason for choosing to keep your home over deciding to buy or build new, once you have decided to remodel and make your house your home you are probably wondering about the return on your remodeling investment.
The 2018 Cost versus Value Report from Remodeling Magazine gives us a good starting point for weighing in the worth of the investment. I was surprised to find that exterior improvements topped the list for costs recouped on remodeling projects. The range of costs recouped were 75% – 98%. These exterior improvements include garage door replacements, stone veneers for foundations or retaining walls, siding replacements and deck replacements or additions. Window replacements and reroofing were also included in the list and showed a recoup of 69%-74%.
Following the exterior improvements were kitchen upgrades or remodels and bathroom remodels and additions. Major kitchen remodels did not recoup as much as minor kitchen remodels did with major remodels recouping 53% but minor remodels bringing 81%. Bathroom remodels gave a better recoup percentage than bath additions as bath additions recouped 59% and bath remodels saw 70%. Master suite additions had a 48% recoup rating.
Of course, that is just the black and white of it, just the facts. The soul-searching entails listening to that inner voice that is in harmony with all the memories you share. The part that awakens when you step out on your porch and you know that home is just well that - home. It’s a good time to remodel as interest rates are still manageable, the housing industry is healthy and, professional qualified remodelers still have availability in their schedules.