Building & Remodeling
Which Remodeling Projects Get The Best Return On Investment
What remodeling job has the best return on investment? According to the National Association of Realtors, in their Cost vs. Value report; a deck addition is the winner and will yield an 85.4% return. I have to assume that this is a substantial deck on a house that did not have one already. Decks can vary greatly in design and materials used and both will impact the price. They do however provide additional outside living space especially when it is family party time in the favorable weather.
The next two on the list are a major kitchen remodel and a bathroom remodel at 78.1% and 78.3% respectively. Kitchens and baths are the places where you can really exceed the budget if you are not careful. Your contractor will be asking a lot of questions to establish these budgets if they have not already been drawn and specified by an Architect. Custom made or out of a cardboard box (i.e. “stock”) cabinets? Granite or laminate countertops? White generic or stainless steel appliances? There is nothing better in the oooo and ahhhh department than a brand new kitchen. Just remember that it will be completely out of service for a couple of weeks and be sure to stay within your budget and not get starry eyed over the new and improved products.
A master suite addition was suggested at a 69% return and a family room addition at 68.6%. I like to think that additions define themselves based upon the current owner’s needs and financial resources. As the family grows, and the bread winners income(s) increases; the need for additional space becomes obvious. How additions are going to be placed on the house lot becomes a discussion of zoning regulations, septic or sewer, as well as many other subsurface issues. Your contractor will be able to guide you through that.
The last item on their list was a new roof at a 67.4% return on investment. This is more a need to have issue in my opinion. Folks aren’t putting on new roofs because it’s a good investment; they are calling a contractor because it is at or past its life expectancy!