Remodeling: Return on investment

On May 21, 2009, in General Remodeling, by Justin Bravo

roi 300x249 Remodeling: Return on investment pictures

Besides wanting to know how much a remodeling project will cost and when the work will begin and end, customers have one core concern: how much the investment will add to the home’s value.  Landscaping and fresh paint may lure house hunters inside, but once in the door, buyers of existing homes look for functionality, durability, and convenience. That is why it is so important for a resale to be modernized.  Kitchens and baths are among the most popular home improvement projects, which also drive the largest return on investment.  Even the smallest changes to a dated kitchen or bathroom can improve a potential buyer’s overall impression of a house.

Before making a final decision about remodeling, you need to know the value-added benefit of your proposed project and how home improvements affect property values in your geographic region.

Project
Job Cost
Resale Value
Cost Recouped
Siding Replacement, Upscale
$10,393
$10,771
103.6%
Bathroom Remodel, Mid-Range
$10,499
$10,727
102.2%
Minor Kitchen Remodel, Mid-Range
$14,913
$14,691
98.5%
Siding Replacement, Mid-Range
$7,239
$6,914
95.5%
Two-Story Addition, Mid-Range
$80,133
$75,831
94.6%
Attic Bedroom, Mid-Range
$39,188
$36,649
93.5%
Bathroom Remodel, Upscale
$26,052
$24,286
93.2%
Major Kitchen Remodel, Mid-Range
$43,862
$39,920
91.0%
Deck Addition, Mid-Range
$11,294
$10,196
90.3%
Basement Remodel, Mid-Range
$51,051
$46,010
90.1%
Window Replacement, Mid-Range
$9,684
$8,681
89.6%
Window Replacement, Upscale
$16,096
$14,259
88.6%
Bathroom Addition, Mid-Range
$22,977
$19,850
86.4%
Roofing Replacement, Upscale
$16,453
$14,141
85.9%
Bathroom Addition, Upscale
$47,212
$40,488
85.8%
Major Kitchen Remodel, Upscale
$81,552
$69,194
84.8%
Roofing Replacement, Mid-Range
$11,164
$9,456
84.7%
Family Room Addition, Mid-Range
$54,773
$45,458
83.0%
Master Suite Addition, Mid-Range
$73,370
$60,460
82.4%
Master Suite Addition, Upscale
$137,891
$110,512
80.1%
Sunroom Addition, Mid-Range
$31,736
$23,643
74.5%
Home Office Remodel, Mid-Range
$13,143
$9,569
72.8%

The value of any remodeling project also includes elements that can not readily be measured in dollars and cents. For example, adding a family room can immeasurably improve the quality of life for a growing family with young children. Likewise, increased storage in a room may free up space for exercise equipment in another part of the house. Taken together, the overall effect is reduced stress, increased comfort, and improved physical and mental well-being.

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About the author

Justin Bravo

Justin Bravo is the Vice President of Lone Star Remodeling And Renovations - a design-build remodeling and interior design firm serving the San Antonio area. Justin is also the President of the National Association of the Remodeling Industry in San Antonio.

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6 Responses to Remodeling: Return on investment

  1. San Antonio Remodeling Firm | Lone Star Remodeling And Renovations | Universal Design Remodeling says:
    March 7, 2010 at 7:22 pm

    lifestyle of potential buyers if you chose to sell your home. It’s important to consider the resale value of your project when remodeling by considering how easily your home or project’s layout could be utilized by

  2. Stan says:
    March 21, 2010 at 2:33 pm

    Hello! I ran into your site quite by mistake, and it worked out great! This is very interesting, and I will be back for more :) Thanks!

  3. Tommie Lovejoy says:
    April 3, 2010 at 11:55 pm

    Pretty insightful post. Never thought that it was this simple after all. I had spent a good deal of my time looking for someone to explain this subject clearly and you’re the only one that ever did that. Kudos to you! Keep it up

  4. Jesus Hodder says:
    June 4, 2010 at 6:50 pm

    I love your blog. I do remodeling for myself and many others for a business. This blog it great for learning and reading about remodeling. I located your site on Yahoo.com. Keep up the excellent postings!

  5. Moe says:
    July 14, 2010 at 7:24 pm

    Good info, numerous thanks to the author. It’s incomprehensible to me now, but in standard, the usefulness and significance is overwhelming. Thanks yet again and excellent luck!

  6. hmm says:
    September 14, 2010 at 3:43 am

    Wow!, this was a top quality post. In theory I’d like to write like this too – taking time and real effort to make a good article… but what can I say… I keep putting it off and never seem to get something done

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