When it comes to remodeling a home, there are wants – maybe a gazebo or a chef’s kitchen – and then there’s what we need. Finally, there’s what makes investment sense. How much of a project’s cost will you get back when you sell the house?
The good news is that with home values on the rise, the payback from many home renovations is rising too. A new report reveals how different home improvement projects stack up as investments. Some projects were considered midrange and others upscale, which depended on size and whether they incorporate higher-end trim and amenities.
Bathroom additions, those that are considered a midrange project, come in at just above fifty percent. The survey by Remodeling Magazine shows a 6 by 8 foot bathroom addition, with a cultured marble countertop and ceramic tile floor, has a return on investment value of 54 percent. It is the least cost-effective of the projects studied in the Remodeling Magazine 2017 report.
When you go downstairs to one of the busiest rooms in your home, the kitchen, a midrange major kitchen remodel returns a value of 65 percent. The cost of changing cabinets, sinks, countertops, and flooring could set you back $62,000 on the average.
An upscale window replacement project produces a 73 percent cost effective value, according to the survey. This project envisions replacing 10 existing 3-by-5-foot, double-hung, insulated windows. They would feature an interior hardwood finish and exterior aluminum cladding.
Here is one you may not have thought about, and it’s not that expensive – replacing your garage door. A mid-range door replacement has a cost-effective value of 77 percent, with the price of a mid-range garage door at $1,800.
Another relatively inexpensive remodeling project would be replacing your old front door with a mid-range steel door. The average cost of that door is about $1,400 but it has cost-effective value – almost 91 percent according to the survey by Remodeling Magazine.
Adding loose fiberglass insulation to a 35-by-30-foot attic floor is the only project in the study that, on average across the nation, earns homeowners more when the home is sold than it cost to do. Payback for these projects can be quite different at a regional or city level, though.