The cost of remodeling a home is easier to stomach when homeowners can expect to recoup a sizable percentage of the costs of the renovation. While basing renovations on their potential impact on resale value may be unwise, return on investment is something homeowners must consider when mulling renovation projects.
Many homeowners wonder which renovations will resonate most strongly with potential buyers when a home is put up for sale.
Looking at the numbers
Homeowners are more likely to recoup their investment in renovation projects like manufactured stone veneer for the exterior, an upscale garage door, minor kitchen remodels, an entry door replacement and a deck addition according to the Remodeling 2019 Cost vs. Value Report.
Projects with the least return on investment tended to be more expensive undertakings that offered returns of roughly 51.9 percent like an upscale master suite addition.
For those considering renovations, keep these figures in mind, courtesy of Home Advisor:
The average cost of kitchen remodels comes in at $20,474, with homeowners spending anywhere from $4,500 for small kitchen remodels to $49,000 or more for high-end projects. The National Kitchen and Bath Association estimates that the top expenses include cabinetry/hardware (29%), installation (17%), appliances (14%), countertops (10%) and flooring (7%). The caliber of the materials you choose has a huge impact on the look of your kitchen and the cost.
The average bathroom remodel costs $10,280. Most homeowners spend between $5,945 and $14,801. You can spend as little as $3,500 to $7,000 updating the essentials in a small or medium-sized bathroom. On a large or master bath, you could spend up to or beyond $13,000.
Most roofing materials only last 20 to 30 years, which necessitates periodic repairs and replacement, depending on the material used. For example, tile, slate and copper roofs can last 50 years or longer, while asphalt shingle roofs last 20 years. The average cost for replacing a roof is $6,838, although the final price depends on factors such as the roof size, roof pitch, the type of application and the materials.
There are even renovations that seem like good ideas but can actually hurt the resale value of a home. MSN Money lists these projects as money-wasters for those who want to sell soon.
Lavish lighting fixtures can look dated in a few years when trends change.
Wallpaper or textured walls can be notoriously hard to change, and buyers know that.
Kitschy renovations, such as 1950s diner tiles, may appeal to only a select number of people. Neutral renovations are better if resale is the goal.
Many real estate experts warn against converting a bedroom into anything other than a bedroom — even for the purposes of a home office. Such conversions can immediately devalue the property. The same can be said about combining two small bedrooms into one larger space.
Homeowners should investigate potential renovations before committing the time and money to something that may offer little value at resale.
While basing renovations on their potential impact on resale value may be unwise, return on investment is something homeowners must consider when mulling renovation projects.