Remodel Cost Vs Return

A couple of things to remember before you remodel if you are planning on selling after the remodel:

  1. Don’t over improve for the neighborhood. You will not be able to get your money back.
  2. Use neutral colors for paint and carpet.
  3. Adding storage space is always a plus.
  4. Single use projects rarely pay for themselves. I am referring specifically to a pool.
costVvalue

Simpler, lower-cost projects tend to return greater value.
Projects expected to top 100 percent payback: the midrange garage door replacement, the upscale garage door replacement, the midrange window replacement, and the minor kitchen remodel. Notice a pattern? With the exception of the kitchen job, they’re all replacement projects. In general, replacements cost less and provide a bigger payback than remodels or additions.

First impressions are important.
The replacements that offer the greatest payback are the ones that are most obvious to buyers when they first view a house in person or online, such as new door or garage door. Kitchens still offer the most remodeling bang for the buck.

The data I am using comes from the National Association of Realtors and is an averaging of remodeling costs and returns. I used the numbers from the San Diego area of the survey.

Midrange Projects

ATTIC INSULATION (FIBERGLASS)

Air-seal a 35×30 attic floor to address any air leakage from conditioned spaced to unconditioned space. Then add fberglass loose fill insulation, placing it on top of existing insulation if present. Fiberglass loose fill is applied until thickness equating with R-30 insulation value is reached.

Job Cost$1,360
Resale Value$2,410
Return176%

BACKYARD PATIO

Install a 20×20 flagstone patio on flat ground behind the home. Connect the house and patio by installing a lift-and-slide glass door on the back of the house. Place a gas-powered fire pit in the center of the patio and surround it with four mid-priced all-weather deck chairs. On the far end of the patio from the home, install a stoneveneer modular kitchen unit with gas grill, mini-refrigerator, sink, and storage. From each corner of the patio, erect a 20×20 cedar pergola capable of holding an awning that can shade the entire deck. Install mid-priced, low-voltage lights on the pergola sufficient to illuminate the patio at night. Install all needed gas and electrical connections underground from the home to the patio.

Job Cost$59,200
Resale Value$44,000
Return75%

BATHROOM ADDITION

Add a full 6-by-8-foot bathroom over a crawlspace with poured concrete walls. Include cultured-marble vanity top with molded sink; standard chrome faucets; 30-by-60-inch white fiberglass tub/shower with ceramic tile surround; single-lever temperature and pressure-balanced faucet; white low-profile toilet; general and spot lighting; electrical wiring to code; mirrored medicine cabinet; linen storage closet or cabinet; vinyl wallpaper; painted trim; and ceramic tile floor.

Job Cost$50,100
Resale Value$45,000
Return90%

BATHROOM REMODEL

Update an existing 5-by-7-foot bathroom. Replace all fixtures to include 30-by-60-inch porcelain-on-steel tub with 4-by-4-inch ceramic tile surround; new single-lever temperature and pressure balanced shower control; standard white toilet; solid-surface vanity counter with integral sink; recessed medicine cabinet with light; ceramic tile floor; vinyl wallpaper.

Job Cost$21,600
Resale Value$19,100
Return88%

DECK ADDITION (COMPOSITE)

Add a 16-by-20-foot deck using pressure-treated joists supported by 4×4 posts anchored to concrete piers. Install composite deck material in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing using a matching system made of the same composite as the decking material.

Job Cost$21,600
Resale Value$18,500
Return95%

ENTRY DOOR REPLACEMENT (FIBERGLASS)

Remove existing 3-0/6-8 entry door and jambs and replace with fiberglass door with simulated wood grain, stained same color both sides; dual-pane, decorative half-glass panel with zinc caming; PVC-wrapped exterior trim in color to match existing trim; 2.5-inch interior colonial or ranch casings in hardwood stained to match door. Replace existing lockset with mortise lock with lever handle and integrated deadbolt.

Job Cost$3,400
Resale Value$3,410
Return100%

ENTRY DOOR REPLACEMENT (STEEL)

Remove existing 3-0/6-8 entry door and jambs and replace with new 20-gauge steel unit, including clear dual-pane half-glass panel, jambs, and aluminum threshold with composite stop. Door is factory finished with same color both sides. Exterior brick-mold and 2.5-inch interior colonial or ranch casings in poplar or equal prefinished to match door color. Replace existing lockset with new bored-lock.

Job Cost$1,510
Resale Value$1,820
Return122%

FAMILY ROOM ADDITION

In a style appropriate to the existing house, add a 16-by-25-foot room on a crawlspace foundation with siding and fiberglass shingle roof. Include drywall interior with fiberglass insulation, pre-finished hardwood floor, and 180 square feet of glazing including windows, atrium-style exterior doors, and two operable skylights. Tie into existing HVAC. Add electrical system to code, including 12 recessed ceiling lights.

Job Cost$106,300
Resale Value$106,300
Return100%

GARAGE DOOR REPLACEMENT

Remove and dispose of existing 16×7-foot garage door and tracks. Install new 4-section garage door on new galvanized steel tracks; reuse existing motorized opener. New door is un-insulated, single layer, embossed steel with two coats of baked-on paint, galvanized steel hinges, and nylon rollers. 10-year limited warranty.

Job Cost$1,960
Resale Value$2,340
Return119%

MAJOR KITCHEN REMODEL

Update an outmoded 200-square-foot kitchen with a functional layout of 30 linear feet of semi-custom wood cabinets, including a 3-by-5-foot island; laminate counter tops; and standard double tub stainless-steel sink with standard single-lever faucet. Include energy-efficient range, ventilation system, built-in microwave, dishwasher, garbage disposal, and custom lighting. Add new resilient flooring. Finish with painted walls, trim, and ceiling.

Job Cost$69,300
Resale Value$55,600
Return80%

MASTER SUITE ADDITION

Add a 24-by-16-foot master bedroom suite over a crawlspace. Include walk-in closet/dressing area, a freestanding soaker tub, separate 3-by-4-foot ceramic tile shower, and double-bowl vanity with solid-surface countertop. Bedroom floor is carpet; bathroom floor is ceramic tile. Painted walls, ceiling, and trim. General and spot lighting, exhaust fan; electrical wiring to code.

Job Cost$136,300
Resale Value$126,500
Return92%

MINOR KITCHEN REMODEL

In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and counter-tops, leave cabinet boxes in place but replace fronts with new shaker-style wood panels and drawer fronts, including new hardware. Replace cooktop/oven range and slide-in refrigerator with new energy-efficient models. Replace laminate counter-tops; install mid priced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.

Job Cost$23,400
Resale Value$28,000
Return119%

ROOFING REPLACEMENT

Remove existing roofing to bare wood sheathing and dispose of properly. Install 30 squares of 235-pound fiberglass asphalt shingles (min. 25-year warranty) with new felt underlayment, galvanized drip edge, and mill-finish aluminum flashing. Assume a 5-square hip roof; custom flashing at two average-size skylights; and custom cap treatment at vented ridge.

Job Cost$23,200
Resale Value$23,000
Return99%

TWO-STORY ADDITION

In a style similar to the rest of the home, add a first-floor family room and a second-floor bedroom with full bathroom in a 24-by-16-foot two-story wing over a crawlspace. Add new HVAC system to handle addition; electrical wiring to code. Family room: Include a prefabricated gas fireplace; 11 3-by-5-foot double-hung insulated clad-wood windows; an atrium-style exterior door; carpeted floors; painted drywall on walls and ceiling; and painted trim. Bathroom: 5 by 8 feet. Include a one-piece fiberglass tub/shower unit; standard white toilet; wood vanity with solid-surface counter-top; resilient vinyl flooring; and mirrored medicine cabinet with built-in light strip; papered walls; and painted trim; exhaust fan. Bedroom: Include walk-in closet/dressing area; carpet; painted walls, ceiling, and trim; general and spot lighting.

Job Cost$197,300
Resale Value$214,300
Return108%

Upscale Projects

BATHROOM ADDITION

Add a new 100-square-foot master bathroom to existing master bedroom over a crawlspace. Include 42-by-42-inch neo-angle shower with ceramic tile walls with accent strip, recessed shower caddy, body-spray fixtures, and frameless glass enclosure. Include a freestanding soaker tub with high-end faucets; stone counter-top with two sinks; two mirrored medicine cabinets with lighting; a compartmentalized commode area with one-piece toilet; and a humidistat-controlled exhaust fan. Use all color fixtures. Use larger matching ceramic tiles on the floor, laid on the diagonal with ceramic tile base molding. Add general and spot lighting including waterproof shower fixture. Cabinetry shall include a custom drawer base and wall cabinets for a built-in look. Extend HVAC system, and include electric in-floor heating.

Job Cost$90,900
Resale Value$66,000
Return73%

BATHROOM REMODEL

Expand an existing 35-square-foot bathroom to 100 square feet within existing house footprint. Relocate all fixtures. Include 42-by-42-inch neo-angle shower with ceramic tile walls with accent strip, recessed shower caddy, body-spray fixtures, and frameless glass enclosure. Include a freestanding soaker tub with high-end faucets; stone countertop with two sinks; two mirrored medicine cabinets with lighting; a compartmentalized commode area with one-piece toilet; and a humidistat-controlled exhaust fan. Use all color fixtures. Use larger matching ceramic tiles on the floor, laid on the diagonal with ceramic tile base molding. Add general and spot lighting including waterproof shower fixture. Cabinetry shall include a custom drawer base and wall cabinets for a built-in look. Extend HVAC system, and include electric in-floor heating.

Job Cost$65,800
Resale Value$48,400
Return74%

MAJOR KITCHEN REMODEL

Update outmoded 200-square-foot kitchen with 30 linear feet of top-of-the-line custom white cabinets with built-in sliding shelves and other interior accessories. Include stone counter-tops with imported ceramic- or glass-tile backsplash; built-in refrigerator, commercial grade cooktop and vent hood, wall oven, and built-in microwave unit. Install high-end undermount sink with designer faucets and water filtration system. Add new general and task lighting, including low-voltage undercabinet lights. Install tile or similar flooring that looks like wood.

Job Cost$131,900
Resale Value$99,300
Return75%

MASTER SUITE ADDITION

Add a 32-by-20-foot master bedroom suite over a crawlspace. Bedroom: Add a spacious sleeping area with lounging/sitting area adjacent to large master bathroom. Include custom bookcases and built-in storage with millwork details; high-end gas fireplace with stone hearth and custom mantle; and large walk-in closet/dressing area with natural light, mirrors, and linen storage. Add French doors to exterior. Bathroom: Include a large walk-in shower with dual-shower system, stone shower walls and floor, and custom frameless glass enclosure. Add freestanding soaker tub. Include two sinks in separate custom vanities with stone counter-tops and large mirrors. Create partitioned area for luxury one-piece toilet.

Job Cost$276,800
Resale Value$220,500
Return80%

WINDOW REPLACEMENT (VINYL)

Replace 10 existing 3-by-5-foot double-hung windows with insulated, low-E, simulated-divided-lite vinyl windows. Simulated wood-grain interior finish; custom-color exterior finish. Trim exterior to match existing; do not disturb existing interior trim.

Job Cost$16,400
Resale Value$15,200
Return94%

If you would like to talk to me about selling your home
call me directly at 760.476.9560

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