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Remodeling Payoff
The "Cost vs. Value" report is published each year in conjunction with Remodeling magazine, gives you a national guide on what various home projects will pay back at resale.
In some cases, the value of the remodeling project at resale is more than 100 percent of its original cost.
This usually happens in markets where property values are rising very rapidly, but it can also occur when buyers regard certain types of remodeling projects as standard.
For example, in a neighborhood where most homes have an updated kitchen, remodeling a kitchen may well increase the resale
value of the home beyond the cost of construction.
In some cases, in fact, not redoing the kitchen could cause the home to
sit on the market for much longer than normal and to eventually sell for less than similar homes in the area.
Since 2002 four projects, reported each year since 2002, have shown the greatest return at resale on a national basis.
Kitchen and bath projects are consistently high performers in most markets.
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Kitchen Remodel |
| |
Job
Cost |
Resale
Value |
Cost
Recouped |
| National Average: |
$81,552
|
$69,194
|
84.8% |
| East Average: |
$82,528 |
$70,718 |
85.7% |
| Midwest Average: |
$83,333 |
$64,586 |
77.5% |
| South Average: |
$77,786 |
$65,111 |
83.7% |
| West Average: |
$83,720 |
$77,812 |
92.9% |
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Project Description: In a functional but dated 200-square-foot kitchen with 30
linear feet of cabinetry and countertops,
replace all old cabinets with new custom updated cabinets.
Replace wall oven and cooktop
with new energy-efficient models. Replace laminate countertops. Install midpriced
sink and faucet. Repaint trim, add wall covering, and replace existing flooring with
resilient flooring.
|
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| Bathroom Remodel |
| |
Job
Cost |
Resale
Value |
Cost
Recouped |
| National Average: |
$26,052
|
$24,286
|
93.2% |
| East Average: |
$26,950 |
$26,211 |
97.3% |
| Midwest Average: |
$27,423 |
$21,379 |
78.0% |
| South Average: |
$23,428 |
$23,087 |
98.5% |
| West Average: |
$27,172 |
$26,778 |
98.5% |
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|
Project Description: Expand an existing 5-by-7-foot bathroom to 9 by 9 feet
within existing house footprint. Add another window, bringing total glazing area to
30 square feet. Relocate and replace tub with custom 4-by-6-foot dual shower with
top-of-line fittings and full-body-wash shower wall, tile, glass block surround,
and glass door. Relocate and replace toilet. Add bidet. Add medium-range stone tops
in custom vanity cabinet with twin designer undermount sinks and polished nickel faucets.
Add linen/towel storage closet. Include ceramic tile floor, papered walls, and hardwood trim.
Add general and spot lighting and a humidistat-controlled exhaust fan.
|
|
| Basement Remodel |
| |
Job
Cost |
Resale
Value |
Cost
Recouped |
| National Average: |
$51,051
|
$46,010
|
90.1% |
| East Average: |
$52,585 |
$43,095 |
82.0% |
| Midwest Average: |
$53,114 |
$38,767 |
73.0% |
| South Average: |
$46,501 |
$45,025 |
96.8% |
| West Average: |
$53,359 |
$57,759 |
108.2% |
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|
Project Description: Create a 1. 1,000 square foot entertaining area with wet bar,
a 5-by-8-foot full bath, and a 2-by-12-foot auxiliary room. Painted drywall throughout;
exterior walls are insulated. Include five six-panel primed hardboard doors. Main room:
Installed recessed can lighting with deecrotive trim rings, and a
well padded and carpeted floor. Bathroom: Toilet, vanity with cultured marble top,
tiled flooring, two-piece fiberglass shower unit, a light/fan combination, and
recessed medicine cabinet. Bar area: 10 linear feet of raised-panel oak cabinets with
laminate countertops, stainless steel bar sink, under-counter refrigerator, and custom tiled floor.
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| Family Room Addition |
| |
Job
Cost |
Resale
Value |
Cost
Recouped |
| National Average: |
$54,773
|
$45,458 |
83.0% |
| East Average: |
$56,464 |
$48,690 |
86.2% |
| Midwest Average: |
$57,599 |
$41,842 |
72.6% |
| South Average: |
$48,778 |
$40,239 |
82.5% |
| West Average: |
$58,081 |
$52,820 |
90.9% |
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Project Description: In a style and location appropriate to the existing house,
add a 16-by-25-foot room on a crawl space foundation with vinyl siding and fiberglass shingle roof.
Include drywall interior with batt insulation, prefinished hardwood floor, and 180 square feet of
glazing, including windows, atrium-style exterior doors, and two operable skylights.
Tie into existing HVAC. Add electrical system to code, including 12 recessed ceiling lights.
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