Statistics Show Recouped Costs of Home Improvement & Remodeling Projects have Risen Since 2011-2012, Encouraging Homeowners to Invest in Home Improvements – Upgrading your Home adds Re-Sale Value
Considering a home improvement or remodeling project but not sure if it’s worth the money? Your home is likely your biggest investment, and putting money into that investment is important – but not if the money spent on the home improvement project isn’t recouped when you eventually sell your house. Finishing an unused basement can essentially add an entire new floor of living space to a home and be a joy for you and your family, but if it doesn’t add value to your home – if you don’t get some of that money back when you sell the house – then it’s a frivolous expense. A lot of homeowners experienced huge losses in their homes’ value over the last half a decade or so, and this leads to apprehension and hesitation when it comes to putting more money into what may seem like a failed investment. However, all the signs are pointing to a housing recovery, and home remodeling projects are recouping their value now more than ever before.
According to the Remodeling 2012–13 Cost vs. Value Report (www.costvsvalue.com), just about every home renovation or remodel imaginable is experiencing higher return on investments than last year and the year before – they are recouping their costs at a higher rate when it comes time to sell. This means that now is as good a time as any to pay for that remodel, because you will recoup more of the project cost when it comes time to sell. Appraisal Institute president Richard Borges said in a recent article that, essentially, the rule of thumb is to stick to your community’s standard when it comes to performing home improvements and remodeling projects if you’re looking for a healthy return on that investment, or those home improvements will be considered excessive and will have an adverse effect on the marketability and resale value of your home. Mr. Borges goes on to say that “the longer a homeowner stays in a property, the greater the opportunity for a return on investment” because home values are continuing to rise in many states. In short: stick it out, improve your home moderately and in-line with your community’s standard, and you should be in an optimal position to see a return on investment on your home improvement project. Below are some examples of the return on investments from various home improvement and remodeling projects, from the Cost vs. Value source cited above:
The numbers below are national averages. For more acute data broken down by region – and even by city – visit the website above, and take a look at the infographic below (which is based on the data provided by costvsvalue.com): The Cost vs. Value tool is an excellent resource for homeowners who are considering a home improvement project.
- Basement Remodel ROI: 70.3%
- Attic Bedroom ROI: 72.9%
- Garage Door Replacement ROI:75.7%
- Wood Deck Addition ROI: 77.3%
- Steel Entry Door Replacement ROI: 85.6%
* NOTE: These figures will have changed in the last couple years
Infographic: Home Improvement ROI Stats
We didn’t create the infographic below, but it’s incredibly informative and worth taking a look at. It essentially breaks down the information available at the Cost Vs. Value Tool. The numbers change relatively frequently, but the value of certain home improvement projects compared to others is fairly consistent. View our collection of home improvement infographics for more remodeling and home investment information.
The above return on investment statistics are only a small sampling of the data provided at www.costvsvalue.com – if you are a homeowner seriously considering a home improvement project and want as much information as possible on the return on investment of specific remodeling projects, we advise you to visit the Cost vs. Value website and others like it (such as Houzz’s “Real Remodeling Cost” tool – which allows you to choose a region, choose an area of the house, and then find out all types of information: the average remodel cost, average household income, average home value, and more) in order to gather as much information as possible so that you can make the best choice for your home improvement project. Another aspect of making the best decision is hiring a local home improvement contractor that understands the effect of a home improvement on a property’s value. CraftPro Contracting has worked with a number of real estate agents and many homeowners who are in the process of selling and who are in the process of buying a home, so we know the best approach for upgrading your home. We know how to maximize your home’s value from our experience working with realtors. Contact us today.
Find me, Richard D’Angelo, President of CraftPro Home Improvements and this article’s author on Google+. You can also visit CraftPro on Google+ and join our community of home improvement, maintenance and renovation professionals.