Remodeling: Cost Vs. Value
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.
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 only remodeling job breaking into the top 10 in terms of payback is the minor kitchen remodel with a national average cost of $19,226 and a national average payback of 79.3 percent.
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.
If you do remodel your home what can you expect when it comes time to sell?
Major Kitchen Remodel
Update an outdated kitchen with new:
- Wood cabinets, including a kitchen island
- Laminate countertops
- New lighting & ventilation system
- Double tub stainless steel sink & new faucet
- Energy efficient oven, cook top, dishwasher, microwave & disposal
- Flooring & paint the kitchen
Average cost $66,000 Average resale value $49,600 Cost recouped 75%
Minor Kitchen Remodel
Update a functional but out dated kitchen with:
- Reface cabinets with new raised panel wood doors and drawers
- New laminate counter top
- Energy efficient oven and cook topSink & faucet
- Flooring & paint the kitchen
Average cost $22,400 Average resale value $23,200 Cost recouped 103%
Update a 20+ year old bathroom with:
- Porcelain on steel tub with ceramic surround
- Standard white toilet
- Ceramic tile flooring
- Vanity with double sinks
- Faucets for sink and bath
- Recessed medicine cabinet
- Paint & Wallpaper & new light fixtures
Average cost $ 20,400 Average resale value $15,500 Cost recouped 76%
Add a 16 x 20 foot deck using:
- Pressure treated yellow pine for joists
- Use 4×4 posts on concrete footings
- Use composite deck material for deck
- Install a built in bench, planter box and railing system all the way around
- Add 3 steps to grade
Average cost $18,600 Average resale value $14,300 Cost recouped 77%
Replace 10 existing 3×5 foot windows:
- Install double glazed with exterior clad in vinyl windows
- Wrap existing exterior trim as required
Average cost $19,100 Average resale value $17,100 Cost recouped 90%
If you would like to talk to me about selling your home
call me directly at 760.476.9560 or email me via the contact tab.