The return on renovations has gone up for the first time in six years
“How much will my home value go up after this renovation?” is the question most homeowners will ask fairly early in the remodeling process. It makes sense. No one wants to dump their money into a hole.
Remodel magazine says renovations are paying back more
The good news, according to Remodel magazine, is that most renovations are paying back more than they were the year before. Their latest report detailing the value of 35 different projects nationwide shows that, for the first time in six years, the return on money invested in these projects has gone up. What this means is that it’s a terrific time to invest your money in a home renovation project.
The folks at Remodel magazine did a comprehensive study that further broke down their findings into regional reports. The Remodeling 2012-13 Cost vs. Value Report shows that these are the top three upscale projects paying off in the West South Central area (which includes Dallas):
Adding a bathroom. The cost to add a bathroom with all the bells and whistles is estimated to cost a little over $65,000, for a resale value of more than $41,000. The estimate assumes you’ll be adding a new 100-square-foot master bathroom with features such as body-spray fixtures, stone countertops with two sinks, larger matching ceramic floor tiles, heated towel bars, etc.
Bathroom remodel. The cost to upgrade an already existing bathroom with all the bells and whistles is estimated to cost $46,760, for a resale value of $31,257. The estimate assumes you’ll be converting an existing 35-square-foot bathroom into 100-square-feet of luxury that includes a large shower enclosure with ceramic tile walls with accent strip and all of the features mentioned in the bathroom addition section above.
Major kitchen remodel. The cost to upgrade the kitchen was estimated at $49,530, for a return of $36,111. The estimate assumes you’ll be updating a 200-square-foot kitchen with semi-custom wood cabinets, complete with an island, laminate countertops, custom lighting and new flooring, among other things.
Check out the full report, for the lowdown on other projects.
If you plan to continue living in your home after the renovation, there is a satisfaction that comes with knowing that the renovations are adding value to your home. And if you plan on selling your home after the renovation, then you really need the work to pay off right away.
Remember, a full consultation with a contractor will help you better determine what renovations will pay off in the long run and, most importantly, what changes will enhance your lifestyle.