Cost VS. Resale Value… Does Remodeling Pay?
Most people add-on or remodel to “stay put” because they like their neighborhood and the school district. Typically, they have looked at newer, larger houses in the area, but have decided to invest in their current home to get the space or amenities that they want.
Still, people are curious as to how remodeling costs stack up against resale values. There are many variables that determine what homeowners can expect to recoup from their remodeling investment: the value of the home, the value of similar homes in the neighborhood, the rate at which property values in the area are rising, and the quality and design of the construction performed by the remodeler.
In its November 2005 issue, Remodeling Magazine conducted a nationwide study to determine the percentage of remodeling investment dollars that are recouped upon home resale for various projects. They quoted both national and regional figures, so Boston area figures were determined. In over 95% of the 22 project categories, the Boston area percentages of recouped costs were higher than the national average – and most exceeded 100%. Highlights of the results of this study appear below.
2 Story Addition (Family Room with Master Suite Above)
Bath Remodel (Mid-Range)
Bath Remodel (High-End)
Kitchen Remodel (Mid-Range)
Kitchen Remodel (High-End)