Will I Recoup the Cost of My Remodeling Project When I Sell My House?
When considering a home remodeling project homeowners often ask themselves or their professional remodeler what kind of return on investment they can expect from their specific project. As you can imagine ROI on a home remodeling project can be difficult to assess, especially since no two remodeling projects are exactly the same.
Fortunately for us and our customers, Remodeling Magazine has worked hard to compile national data in the Remodeling 2017 Cost vs. Value Report (www.costvsvalue.com). According to the Cost vs. Value Report homepage this database consists of 29 different types of remodeling jobs at different price levels split up by region. The data is comprised from surveys given to remodeling professionals and real estate professionals. Job Costs are based on hiring a professional to complete the project.
While most remodeling projects’ actual resale value comes in lower than the job cost according to the Cost vs. Value Report, there are in fact a few that show over 100% recouped cost for resale, on average. Among the higher resale valued jobs are:
o Midrange Family Room Additions
o Midrange Manufactured Stone Veneer (along 1/3 bottom of the front of a home)
o Upscale Universal Design Bathroom
o Upscale Grand Entrance
Also note the high percentage of recouped cost on midrange bathrooms and kitchens. The fact that most of these remodeling projects’ resale values show to be lower than actual job cost, draws me to one general conclusion: that most of our customers, and maybe you if you are reading this, desire their remodeling project to give them a high return on “live-in value.” You should invest in the project and expect to regain a significant portion of the job cost with resale, knowing that the rest of the job cost that is not recouped can be made up for by many years of enjoying living in the newly remodeled home. If it’s your “forever home” or “until the kids grow up home”, then resale value may not be as big of a concern.
By assessing you and your family’s personal needs and wants, together with this data at your finger tips you are able to make wiser, more informed decisions about investing in the remodeling project you have been considering. I encourage you to check it out! Little Rock is among one of the cities in the West South Central Region, which reflects surrounding areas such as Conway and Maumelle as well. (www.costvsvalue.com)