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Is Remodeling a Good Investment?

November 7, 2018 Home Remodeling Blog

Returning your Remodeling Investment

Depending on where you live and what you intend to remodel is what will determine if you’ll receive profit from remodeling a part of your home. If you are remodeling your home with intentions to improve the value of your home, than it is a good idea to do your research before you begin the remodeling process. Otherwise, you may never get back what you put into the remodeling project. If you’re remodeling because something is broken, then by all means fix it. Don’t ignore the part of the house that needs to be fixed, so you can add new kitchen countertops. That’s a poor decision – that will eventually hurt your wallet.

When you do your research you need to find out what people in YOUR area are interested in. A way of finding this out is by talking to a local real estate agent, interior decorator, or architect. What’s popular in one side of the country may not be popular at all on the other side. If you live in a neighborhood that typically has 2 baths, and your home has one, it would be a good idea to add another bathroom.

Here is the average percentage of return per dollar spent for different remodeling projects. Remember that these are only averages compiled from a number of different sources, and may vary considerably for your home:

• Minor kitchen remodeling: 94% – 104%
• Install central heating system*: 100% – 102%
• Major kitchen remodeling: 90% – 94%
• Bath addition: 92%
Bath remodeling: 77% – 85%
• Central air conditioning*: 75%
• Family room addition: 85% – 87%
• Decks: 73% – 83%
• Replace windows*: 68% – 74%
• Add a home office: 55% – 65%
• Add a swimming pool*: 44%
• Add landscaping: 30% – 50%
• Remodel a basement: 15%

*These projects or additions can return considerably more or less depending on the region of the country, and climatic conditions. For example, adding a swimming pool in Wyoming, will probably not return as well (if at all) as adding a pool in New Mexico.