DON'T REMODEL.
Remodeling seldom pays you back; Remodeling Magazine's annual cost vs. value report shows that the cost of most remodeling projects are not 100% recouped when the home is sold. As shown in the following table, every time you sink money into these projects, you take money out of your pocket when you sell your home. For instance, adding a bath sends 28% of your investment down the drain. And a swimming pool returns as much value as a hole in the ground.
|
Project |
Cost Recouped |
Your Loss |
|
Adding a bathroom |
72% |
28% |
|
Remodeling a bathroom |
71% |
29% |
|
Adding a family room |
71% |
29% |
|
New kitchen |
70% |
30% |
|
Adding a bedroom |
65% |
35% |
|
Replacing windows |
56% |
44% |
|
Swimming pool |
0% |
100% |
Home Inspections Since 1997
30 years experience in home renovation and general contracting
15 years experience as a real estate investor and in marketing
Affordable Home Inspections 905-730-9300 www.affordablehomeinspections.ca
Al, good point! The ROI is often not there. I always felt remodeling is for the benefit of the person living in the home not a financial gain. Thanks.
There are many less expensive alternatives to put the best face forward on a home for sale. Expensive remodeling projects just won't be worth it, I agree.
Also, however, remember that all real estate is local. A swimming pool can add significant value out here. In fact, I've seen appraisers who add $50,000 to the value of a property if it has a swimming pool. I think I'm out of my pool/spa phase now, unless someone else does the maintenance!