Should You Break The Bank On Your Next Home Remodel

Should You Break The Bank On Your Next Home Remodel

Are you contemplating a home renovation in the year to come? Whether it’s something small like replacing an entry door or a major project like adding a bathroom, your decision comes down to how much value the project adds to your home.

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If you’re looking to stay in your current house five years or more, the value-add is subjective. How much does the improvement affect your enjoyment of your house? If you’re looking to sell soon, you’ll need to consider how that project may affect the resale value of the house.

As an agent, I’ve had several people ask me about how much value an improvement project would affect their resale value. The answer is almost always, “Not as much as it costs.” In fact, according to the latest edition of Remodeling Magazine's Cost vs. Value report, the average home improvement project adds about 64 percent of its value to a house. In other words, you usually won’t recoup the full cost when you sell.

That being said, there are a few situations in the resale market when home improvements may be worth the cost:

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    When the improvement corrects a safety issue that would otherwise be revealed in an inspection. There’s no sense in ignoring any issue that would cause your home to fail inspection and jeopardize a contract.

  • When the improvement can be done yourself. Great examples would be replacing knobs on kitchen cabinets and drawers, swapping out old lightbulbs for energy-efficent LEDs, replacing your grandmother’s hand-me-down curtains, or painting an accent wall. An interior designer can bring great perspective.

  • When the improvement is otherwise relatively cheap ($2,000 or less). The projects that tend to hold the best value are the ones that are cheapest, such as a basic garage door or steel entry door replacement.

To see much value your project would add to your home, check out the Cost vs Value report here. Also, consult a real estate professional, who can evaluate comparable properties in the area and give you an estimation of before and after values.

Has one of your home improvement projects outperformed the 64 percent average? We’d love to hear about it in the comment section below!

Chris Dell Headshot
Phone: 706-202-9437
Dated: September 18th 2017
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