Thinking about remodeling, renovating, upgrading or building an addition to your home? Well before you do, it may be wise to check out the Remodeling Cost vs. Value Report for 2010-2011 online. You can download a report for free which gives specifics on how much the typical remodel of a certain room or home upgrade will cost you and how much money you can expect to recoup once you sell your home. The report provides area specific information and average costs for remodeling projects for each region of the country. It's a wealth of knowledge!
For example, in Burlington, Vermont, the report claims some of the remodeling projects which give the highest return on investment are:
Vinyl Window Replacement - Cost: $9,400; Resale Value: $8,000; Cost Recoup: 85.2%.
Attic Bedroom Remodel which can cost approximately $42,000 and in an ideal market, you could potentially recoup about 80% of your investment or roughly $33,500.
Some examples of projects giving the lowest ROI include:
Home Office Remodel which apparently can cost as much as $26,000 and the resale value will only get a homeowner $11,400, therefore a 43.6% cost recoup.
Bathroom Addition with a cost of approximately $33,700 and offer a resale value of $17,500, so 51.9% recoup in money spent.
Another popular renovation project is the Kitchen Remodel! The Cost vs. Value Report offers three different figures on a Kitchen Remodel: Midrange Minor Kitchen Remodel, Midrange Major and Upscale Major Remodel. All of which give cost recoups of 62%, 69.6%, and 62.1% respectively! Check out the report for specifics.
Now, keep in mind that these figures are all just averages and estimates. Renovation project costs can certainly vary and resale values can definitely vary depending on the real estate market and economy. If you have a prior relationship with a good general contractor and/or handy person or can do some of the work yourself, your costs could potentially decrease a bit. However, you should always leave major structural work, plumbing and electrical work to the experts! Work done by unskilled people or sloppy handy work can decrease the value of your property and/or create problems for later home inspections or appraisals! Also, waiting a few years to sell your property or waiting to sell until your real estate market is booming, can also increase your chance of a higher ROI. Plus wouldn't it be nice to get a few years to enjoy and make use of your recently remodeled kitchen, master suite, deck or bath?!
Here's a cute and informative video from Forbes' Investopedia website on calculating ROI: