Before you start
Not all renovations recover cost or enhance property value to the same extent. Keep in mind, remodeling always costs more and takes longer than expected. Take time to plan your project before you start swinging the hammer. Don’t go overboard, you want the renovations to compliment the property and make sure it still fits the neighborhood. You will get the highest return from a medium-end remodel that appeal to the largest amount of people. And remember, not all rooms are created equal – focus on the highest value rooms first (kitchen, bath and primary bedroom/bath). Always add 15% to your budget as a fudge-factor.
Renovations that add value
Improvement | Approximate Cost | Return on Investment (ROI) estimate |
Kitchen remodel – complete | $40k – $80k | 60% |
Kitchen remodel – minor | $20k | 80% - 90% |
Bathroom addition | $50k – $90k | 60% |
Finished basement | $10k - $60k | 80% |
New windows | $10k - $80k | 70% - 90% |
Patio/Deck | $20k - $60k | 50% - 75% |
New front door | $1K - $3k | 75% - 100% |
New garage doors | $2k - $4k | 100% |
Paint job | $4k - $8k | 70% - 100% |
Landscaping | $3k - $8k | 70% - 100% |
Refinish hardwood floors | $3k - $8k | 80% - 100% |
Air sealing, insulation, furnace, AC upgrades | $6k - $25k | 20% - 40% resale, but can be 100% if you plan to stay |
New roof | $6k - $20k | 70% - 100% |
Solar/geothermal | $15k - $65k | Calculate based on actual utility bill offset and life expectancy of system |
Other costs to consider
· Demolition and haul-off costs
· Required permits
· Inspections
· French drains
· Water sealing
· Home warranty
· Costs of hiring contractors
· Electrical and plumbing upgrades
· Foundation repair
· Mold mitigation
· Radon mitigation
Of course, these are just estimates. The complexity of the room, preparation of the site, and the range of materials (from nails to paint to countertops) influence the costs to renovate. The resale value and percentage of costs recouped will be different for each project.
Comentarios