Find Out Which Remodeling Projects Give You The Biggest Return

Remodeling Magazine’s annual “Cost vs. Value Report” is out! If you’re thinking about remodeling or updating your home before putting it on the market, find out which projects will give you the biggest return. To come up with the values, Realtors in 65 markets were given construction specs and costs on 29 upscale and midrange projects and asked to estimate the percentage return at resale.

 

A common misconception is that you will recoup all your remodeling costs and then some.  When looking at the national cost recovery rates for various projects, only one recouped more than 80% of the cost, and that was a minor bathroom remodel. Having said that, results from the Pacific NW showed 6 projects that recouped 100% or more of the cost. The amount recouped depends on several factors including the condition of the rest of the house, value of other homes in the neighborhood, and availability of and price of new homes in the area.

 

 Projects with the highest national percentage of cost recouped:

 Upscale siding replacement              88%

Wood deck addition                          85%

Minor kitchen remodel                      83%

Wood window replacement             81%

Vinyl window replacement                81%

  

Projects with the highest percentage of cost recouped in the Pacific NW:

 
Addition of wood deck                      108%

Minor kitchen remodel                      103.5%

Wood window replacement              102.9%

Upscale siding replacement                100.9%

Vinyl window replacement                100.7%

 

 I found it very interesting that here in the Pacific NW our cost recouped is much better than the national average.

National		Pacific Northwest
Project	Cost Recouped	Project	Cost Recouped
Minor kitchen remodel	83%	Minor kitchen remodel	103.5%
Addition of wood deck	85.4%	Addition of wood deck	108%
Midrange bathroom remodel	78.3%	Midrange bathroom remodel	96.6%
Wood window replacement	81.2%	Wood window replacement	102.9%
Vinyl window replacement	79.3%	Vinyl window replacement	98.5%

 

 

The following projects don’t recoup as much.  Be careful with remodels that reduce the perceived number of rooms or available space. A home office remodel, for example, might fill a specific need for the way you live in the home. A potential buyer with different space needs won’t see the value, no matter the cost.

National		Pacific Northwest
Project	Cost Recouped	Project	Cost Recouped
Addition of a sun room	59.1%	Addition of a sun room	69.4%
Home office remodel	57%	Home office remodel	68.9%
Upscale master suite addition	64.1%	Upscale master suite addition	77.3%
Upscale roofing replacement	65.7%	Upscale roofing replacement	79.9%
Midrange bathroom addition	66%	Midrange bathroom addition	83.5%