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April 04, 2016

What Should Home Shoppers Know About Remodeling?

Homeownership
What should home shoppers know about remodeling?

When it comes to adding resale value, fiberglass attic insulation is the most cost-effective remodeling project you can do, according to the 2016 Cost vs. Value report from Remodeling Magazine.

Every year the magazine looks at the average cost of 27 different projects and how they affect the price of homes resold within a year of the project’s completion in 100 different markets.

Remodeling put the average cost of a fiberglass attic insulation job at $1,268 nationwide, while the real estate professionals they surveyed estimated the work would increase the resale price to $1,482. In other words, the owner would get about $1.17 for every project dollar they invested – more than a 100% return.  

By contrast, the average return on a home remodeling project was 64.4 %, meaning you can expect to recoup 64.4 cents per project dollar if you sell within a year.

Other top value-adding projects (and their estimated returns) according to Remodeling magazine include:

  • Manufactured stone veneer (92.9 %)
  • Midscale garage door replacement (91.5 %)
  • Steel entry door replacement (91.1 %)
  • Upscale garage door replacement (90.1 %)

“In contrast, the five projects with the worst returns all scored cost-value ratios between 56.2% and 57.7%. From the bottom up, they are: midrange bathroom addition, upscale bathroom addition, upscale master suite, upscale bathroom remodel, and composite deck addition,” the magazine reports.

BUT, if you flip the perspective from homeowner to savvy home shopper, the report is saying you may be able to buy some cool upgrades, like an upscale bathroom addition, for about 57 cents on the dollar. Provided the work was done within the year.

Follow this series just in time for the spring homebuying season.

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