If you want to increase the resale value of your home and get the best return on your investment (ROI) while remodeling, here are a few tips.
Your home is your castle. But if your castle still has a pink bathtub from the 1960s or an avocado green double-oven from the 70s, you might be considering a renovation. Updating bathrooms and kitchens often adds higher resale value, according to Remodeling magazine. For example, the average (midrange) bathroom remodel job costs $16,634. With the resale value added estimated at $10,668, that means 64% of the cost is recouped. A minor kitchen remodel (midrange) costs on average $21,695 and adds an estimated $15,790 to the resale value – that’s a 72.8% ROI!
If you aren’t ready to tackle such a large remodel project, perhaps consider replacing your front door or garage door for an update and higher ROI. Below are the typical costs, resale value and percentage of cost recouped for these midrange items, based on 2010-2011 national averages:
|Renovation Item||Job Cost||Resale Value||% Recouped|
|Entry door replacement (steel)||$1,218||$1,243||102.1%|
|Garage door replacement||$1,291||$1,083||83.9%|
For more renovation ideas and estimated pricing, check out Remodeling magazine’s Cost vs. Value Report. And don’t forget to let your insurance agent know when you remodel or buy new appliances, so that your policy can be updated to cover the upgrades as needed.