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TOP 5: HOME RENOVATIONS THAT OFFER THE BEST AND WORST RETURN ON INVESTMENT.
September 28, 2017
Whether you are doing it because you want to solve an existing problem or because you want to do some changes that will improve your quality of life, remodeling will be an action that will increase the value of your home.
According to Remodeling magazine's 2016 Cost vs. Value Report, you'll recoup an average of 64% of what you paid for a renovation if you sell your home this year.
To come up with this conclusion, consultants were asked in various markets to provide an estimate average cost for 30 home improvement projects that went from adding a bathroom to replacing a roof. After that, real estate agents nationwide were asked to estimate the expected resale value of these renovations so that their out-of-pocket costs could be compared to how much money they'd get back when it came time to sell the home.
So, what projects gets you the best return on investment for your home renovation buck? No, it’s not adding a three times bigger kitchen or fancy bathroom, Attic insulation gets the top spot. For every $100 you spend on attic insulations you will rake in $116.90 on your sales, that’s a recoup of 116.9% of your costs. It’s the only home renovation on this year's report that redeems more money than you spend!
Contrary to what you may think, the worst home renovation is the addition of a bathroom, at 56.2% (which is not bad, but it turns out to have the worst return on investment for this year’s report).
Lower-cost projects generally reap bigger returns, with four of the five projects that cost less than $5,000 ranking among the top five for money back when you sell. Check out the two charts below, including how much you'll pay and get back if you sell your home this year if you were to remodel your home