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Of course, no one is spending those dollars without expecting something in return. But some projects add more value to your home than others. Below is a comparison of three expensive home improvement/renovation projects and three less-expensive projects. Costs and specs for these projects are based on Remodeling Magazine’s 2013 Cost Value Report.
You may be surprised at where you’ll find the most bang for your buck.
Go Big or Go HomeBig home renovations are expensive, inconvenient and awesome when they’re done right. But how much of your costs can you expect to recoup on really big big-ticket home renovations?
Cost recouped: 65.4%
This is a case where a big chunk of the renovation’s payoff will come from your family’s enjoyment of the new space. This addition will cost you nearly $53,000 more than it will add in resale value. This project includes a two-story, 26-by-16-foot addition with a family room, bedroom and bathroom.
Master Suite Addition
Cost recouped: 63.2%
This seems like a lot for a 24-by-16-foot master suite with walk-in closet and full bath. It seems even more expensive when you consider it will only add $64,000 to the value of your home. Perhaps instead consider adding a bedroom in the attic. At a cost of just $47,919, you’ll recoup almost 73% of the costs.
Major Kitchen Remodel
Cost recouped: 68.9%
You could easily spend a lot more than this on a kitchen remodel. The specs don’t include high-end features like granite countertops and deluxe appliances. If you want to go that route with custom cabinets, tile backsplash and commercial-grade range, you’re looking at a $107,406 project that will add just $64,113 in value.
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Small but MightyHere are three home improvement projects under $10,000 that earn their keep.
The Most Important Thing to RememberWith any home improvement, but especially with big-ticket renovations, you must be careful about over-improving for your neighborhood. For example, if most homes in your area are 1,800–2,000 square feet and you add another 800 square feet to yours, you may not recover the costs of the addition when it’s time to sell.
You can consult a real estate agent to find out how your home compares with others in your neighborhood both post- and pre-renovation. Dave’s real estate Endorsed Local Providers (ELPs) are experts in your market, and they’ll give you advice you can trust. Find your ELP today!