Renovating is about living in the home of your dreams, but getting a return on the cash you’ve invested can be confusing. If you don’t plan to retire in your current home, but you know its time to update focusing on areas that give you a good ROI you can recoup thousands of dollars from your renovation.
Recently Remodeling.hw.net made a great post on ROI. Researchers scrutinized 29 popular home improvements in 99 markets nationwide, polling contractors on how much they charge for these jobs as well as real estate agents on how much they think these features boost a home’s market price. From there, they divided each project’s upfront cost by the home’s resale value; the resulting percentage gives you a sense of how well each particular reno “investment” pays off.
The perennial chart toppers for ROI are the cheapest to pull off. This year the No.1 finisher was installing loose-fill fiberglass insulation in the attic. Not exactly sexy, but boy, is it cost-effective! In fact, this is the only project that regularly pays back more than you invest, with an average 107.7% ROI.
The returns will vary by project adding a bathroom, for instance, will bring only a 53.9% ROI when you sell; a master suite, 64.8%.
This is a great starting place to get a sense of what will give the greatest ROI, but understand every situation is different and can vary wildly. For the greatest return always think practical and keep it simple. Overly elaborate construction can cause a negative impact on ROI.
We hope this helps in deciding your renovation process!