What Every Remodeling Homeowner Wants to Know: Which Projects Pay Off The Most?
As a general contractor with over 35 years experience under his belt, Tom Thornton and Tri-County General Contracting are used to getting asked the same question again and again: how do I know a remodel will have a strong return on investment? What is the project’s cost vs value? There is no simple answer to this question, but taking into account several different factors, homeowners can make smart remodeling decisions that stand a good chance of ending up worth the expense.
Remodeling certain areas of a single-family house increases the building’s functionality and adds beauty to a property. And if the remodel has a good Return On Investment (ROI), most of the project’s expenses will be passed on to future owners in the form of increased property values.
Measurable Value > Sentimental Value
It is a simple enough to calculate cost vs value by taking a remodeled home’s increased value and divide it by project cost. This formula yields return on investment, which can be the percentage of project costs that we recouped upon sale. Local market characteristics, conditions of the residential real estate market and the quality of work/materials all affect the value of a renovation. Over Tri-County’s many years of remodeling experience we’ve learned that certain projects almost always have a good chance of paying off, like the addition of a wooden deck, window replacements and kitchen/bathroom upgrades.
In fact, the one project that brings the highest ROI to a homeowner is a far cry from the elegance of new bathroom fixtures or an expanded living room. Adding fiberglass insulation in a home’s attic, at an average cost of $1,268 and an estimated return of $1,482, returns nearly 117% of expenses; and can garnish considerable tax rebates.
Measurable Value < Sentimental Value
For homeowners whose first consideration isn’t their projects bottom line, we often advise them to focus on sentimental value. What is it worth to you? If you have the budget for it, what is your ideal? Would a living room addition built with your favorite hardwood floors let your house’s inhabitants enjoy their home more? Though the cost may be steep, there is no way of putting a price tag on the years and years of happy moments in a beautiful room. Also, though you may not get all your money back when it comes time to sell, if you want handcrafted bathroom enclosuresor a walk-in sauna with a claw footed tub over new ceiling insulation, it’s up to you to go for it!
Many renovations come down to personal taste and priorities. A revamped kitchen with stone counter tops and professional-grade appliances may matter less to a normal potential home buyer than to a homeowners who’s a chef. In the end, it’s about making your home what you want it to be – what will suit your needs best – while also keeping an eye on the bottom line.
Have Questions About Remodeling Cost vs Value? Give Tom Thornton and His Team A Call Today A 610-329-2880