Is your remodeling project worth the investment?

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No homeowner wants to sink thousands into a kitchen update or bath addition, only to discover you can’t recoup the majority of your investment when it’s time to sell. 

Value is only one factor in the decision to remodel, but it’s an important one. The 2020 Cost Vs. Value Report from Remodeling Magazine is filled with data to help homeowners gauge how best to spend your remodeling dollars.

2020 Cost Vs. Value Overview

Not surprisingly, the project that’s been on the back burner will cost slightly more in 2020 than it would have in 2019. Perceived value has not kept up with cost. For six years running, as costs have increased, the perceived value of most remodeling projects has dipped when it’s time to sell. 

Highest-return remodeling projects in Colorado

Because the Cost Vs. Value Report analyzes data for specific regions, we can get a more accurate picture of best practices here in Colorado.

Takeaways for the Mountain Region:

  • Exterior home improvement projects retain higher value than projects inside the house.

  • Mid-priced remodeling projects typically recoup more of their cost than upscale projects.

  • 21 of the 22 remodeling projects in the report recouped at least half of their cost. 

Let’s look at the numbers:

The following percentages reflect the percent of the project cost that will likely be recouped when the house sells. The big performers are exterior projects like manufactured stone veneer (100%) and new garage doors (96%). In the case of windows, vinyl (76%) outperforms wood (69%). Fiber cement siding, on the other hand, retains more value (78%) than the vinyl counterpart (74%). In sunny Colorado, deck additions also do well, with wood decks at 70% and composite at 66%.

For foodies, growing families, and homeowners who like to entertain, creating a kitchen you love might take priority over recouping your costs. For the record, a minor kitchen remodel with midrange pricing retains the most value (79%) of the kitchen remodel categories. An upscale major kitchen remodel recoups half its cost (51%) while a major midrange kitchen remodel recoups 58%. 

A remodeled bath with a dual-sink vanity or adding another bath can make life a lot easier when the kids become teenagers. A midrange bathroom remodel (62%) outperforms an upscale bath remodel (57%). An upscale bath addition, however, comes in at 54%, slightly more than the 52% value retention for a midrange bath addition. Indicative of the aging-in-place trend in this country, a universal bath design recoups 60% of its cost.

Master suite additions recoup roughly half of their costs, with an upscale addition at 50% and a midrange at 56%. 

Cost vs. value is one consideration among many when you’re thinking about a remodeling project. Give us a call. We’ll help you weigh the pros and cons of projects large or small, and steer you in the right direction. 

Other News

Check out the February 28th money issue of Forbes Magazine. You’ll find John and Susan Bradley on The 500 List of Five Star Professional market leaders in residential real estate. Thanks for your support!