But even if you’re renovating a home to live in it, it’s still important to know what you can expect to recoup from those upgrades and improvements and what will eventually pay off when it comes time to sell. Homeowners that over-renovate a home may not get the cost of the improvement back.
For example, it’s not the spa-like bathroom or the magazine-worthy custom kitchen that provide the best return on investment, according to a new report on the impact of home remodeling from the National Association of Realtors and the National Association of the Remodeling Industry.
Instead, the interior projects that recoup the most are refinishing hardwood floors and installing new hardwood flooring.
The report estimates the cost of refinishing floors at $3,400 with an estimated return on investment of $5,000, for a 147% recovery of costs. The estimated cost of installing hardwood floors is higher at $5,000, but with a $6,500 return on investment, 118% of the cost is recovered, according to the research.
Meanwhile, the cost of a dream project — like the addition of a new primary bedroom suite — can be an estimated $182,000, with only about $100,000 of that cost recovered, making the return on investment the lowest of the projects evaluated at 56%.
Best ROI on projects
After refinishing floors and new hardwood, the next best return on investment was another decidedly unsexy project: an insulation upgrade. Priced at an estimated $2,500, all of that cost is expected to be recovered for a 100% return.
Homeowners who do complete kitchen and bath renovations can expect to recoup around 75% of those costs, according to the report. With an estimated cost of about $80,000, a total kitchen renovation recoups about $60,000, and homeowners can expect to recover about $25,000 of a $35,000 bathroom renovation, about 71% of the project’s cost.
Renovating a basement into a living space offers a bit better rate of a return. At an estimated cost of $57,500, homeowners can recoup 86% of that project’s cost.
As for exterior home…
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