Cost vs Value For Home Remodel Projects

When you start with a remodel project, what would your return on investment (ROI) be if you were to sell shortly after the project was completed? The Cost vs Value report is an excellent tool to see what estimated costs would be in our area and what our return would be.

The National Association of Realtors also publishes a Remodeling Impact report, and in their findings, hardwood flooring refinishing showed 147% of the value recovered from the project. It also rates in the top 5 for JOY score. NAR calculated a Joy Score for each project based on homeowners' happiness with renovations.

Let's first take a look at the NAR Remodeling Impact results. You can see in the chart below flooring, according to this report, whether refinishing or adding new wood flooring has the most significant ROI.

Below is the JOY score for Interior remodeling projects. The Joy Score was calculated by combining the happy and satisfied shares when seeing their completed project and dividing the share by 10 to create a ranking between 1 and 10. Higher Joy Scores indicate greater joy from the project.

Now, let's move on to the Cost vs Value Report. I watch this report yearly since one of the most asked questions I receive as a real estate professional is the value of a remodel project before selling. But even if you are not selling, this excellent resource allows you to look at an average cost of a project and what the return on that investment will yield. You can click this link to see the full report yourself and a description of what each project involves. Below are the top five projects and the estimated average cost for the Fort Collins Colorado area per the Cost vs Value Report by Zonda Home.

Garage Door Replacement comes in at the top with an estimated ROI of 99% and an estimated cost of $4000.

Placing manufactured veneer on at least the bottom 1/3 of the exterior home gives an ROI of 89.1% with an estimated cost of $10,989.

Deck addition using wood provides an ROI of 79.8% with an estimated cost of $18,154 depending on size of deck.

Window replacement (vinyl) has an ROI of 78.3% and an estimated cost of $20,252, depending on the number of windows replaced.

Siding Replacement (Vinyl) provides an ROI of 77.7% and an estimated cost of $17,379. Based on homes with old deteriorating siding.

OTHER COMMON PROJECTS

Minor Kitchen Remodel / Midrange = 75.5% ROI. The JOY score could be more critical as most of us utilize our kitchen multiple times daily!

Major Kitchen Remodel = 64.1% ROI.

Bath Remodel / Midrange = 72.6% ROI.

Sources:

Zonda Home

National Association of Realtors

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How you look at the ROI depends mainly on the reason you are remodeling. If you plan to stay in your home for years to come, the JOY score should be your guide because you are remodeling your home for your pure enjoyment! If selling is in the future, then using the Cost vs Value report can be one of your tools but also, speak with a local real estate professional. We are in and out of homes daily, working with buyers, so we know what is most important to buyers now. Reach out with any questions or if you would like me to mail a copy of the Cost vs Value Report by Zonda Home.

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