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Home Improvement - Yea or Nay?
Remodeling can make your home more valuable when you want to sell, while meeting your current lifestyle needs. Although the cash you spend on improvements seldom yields a dollar-for-dollar return when you sell your home, some remodeling projects return more of your investment than others.
Strategies To Bank On
As you consider home remodeling options, consider these guidelines to improve your chances of a good return on your investment:
- Keep the value of your property within 15% to 20% of others in your neighborhood. Buyers who can afford pricier homes will shop in more expensive neighborhoods. If you have the “worst house” in a great neighborhood, you may be able to recoup an ever larger percentage on your investment. But if you own the “best house” in the neighborhood, you may not come close to recouping your costs.
- Style your remodeling for mass appeal. Buyers generally prefer neutral, mainstream design.
- Give buyers quality construction. Use materials that look good and wear well. If you plan to do the work yourself, honestly evaluate your ability to do it right.
- Keep your remodeling compatible with the existing house. Additions and improvements that look “tacked on” may detract from a home’s appeal.
The following table (with data from the November 1999 issue of Realtor Magazine) provides annual figures detailing the cost and value of common home renovation work. Although these numbers provide good guidelines for what certain jobs cost and how much value they have to potential home buyers, it’s important to keep in mind that your preferences and needs may differ greatly. Current market conditions will also influence the actual resale value of your remodeling project(s).
These averages apply to the Seattle, WA area:
| Cost and Value of Common Home Improvement Projects |
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Job
Cost |
Resale
Value |
Cost
Recouped |
| Major kitchen remodel |
$30,401 |
$37,432 |
123% |
| Minor kitchen remodel |
8,568 |
8,355 |
98% |
| Bathroom addition |
13,779 |
16,820 |
122% |
| Bathroom remodel |
9,044 |
10,082 |
111% |
| Family room addition |
30,650 |
32,134 |
105% |
| Master suite |
42,398 |
41,788 |
99% |
| Attic bedroom |
28,367 |
29,745 |
105% |
| Two-story addition |
72,817 |
52,667 |
72% |
| Window replacement |
7,456 |
7,139 |
96% |
| Deck addition |
7,942 |
6,595 |
83% |
| Home office |
8,272 |
5,597 |
68% |
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