Home Renovations: Cost vs. Value – Is It Worth It?

The 2014 Cost vs. Value statistics for home renovations came out earlier this week.  This site compares the average cost for 35 popular remodeling projects with the value those projects retain at resale in over 100 U.S. cities. If you are considering renovating your home make sure you check this out.

I’ll focus mostly on the South Atlantic regional data. This consist of the following states and cities: south-atlantic-

 Atlanta, GA             Baltimore, MD         Charlestown, WV   
Charleston, SC        Charlotte, NC           Columbia, SC 
Fort Myers, FL       Greensboro ,NC       Greenville, SC      
Jacksonville, FL     Miami, FL                 Orlando, FL       
Raleigh, NC            Richmond, VA           Sarasota, FL
Tampa, FL              Titusville, FL             Virginia Beach, VA  
                                                                                            Washington, DC    Wilmington, DE
 

In Richmond, VA the renovation with the highest return on investment is a midrange bathroom remodel. The verdict is in! Richmonders really love upgraded bathrooms. The 2014 national average for a bathroom remodel costs $16,128 with only a $11,476 resale value. This means that only 72.5% of the cost is recouped. In the South Atlantic the average bathroom reno cost is $15,035 with an $11,629 resale or a 77% return. While in Richmond, VA the average cost for a bathroom reno is $14,711 homes are selling for $16,183 higher or a 110% cost recouped to the homeowner.

If you’re like me and you interpret tables better than words see below for the Bathroom Remodel Comparison:

                                     Job Cost                    Resale Value          Cost Recouped

National Average        $16,128                    $11,476                    72.5%

South Atlantic              $15,035                   $11,629                     77%

Richmond, VA              $14,711                    $16,183                    110%

Virginia Beach, VA      $14,852                   $9,934                       66.9%

Don’t worry Virginia Beach your city really loved a garage door replacement. A mere $1,446 investment yielded a $1,718 resale or 119% return!

Some of the lowest recoup renovations in Richmond and Virginia Beach are for a home office remodel, sunroom addition, and master suite addition. Most of these upgrades only saw a 50%-60% return of the investment. The reason behind this is most likely due to buyers personal preference. While a home office is a major perk for some buyers others may prefer an extra bedroom or a home gym. A safe rule of thumb when it comes to upgrades and renovations is to always make sure your upgrades are neutral and customizable. The buyer should be able to easily adjust the room to meet whatever wide array of wants/needs he may have.

When the home renovation turns out to re-design the family instead of the house a.k.a The Renovation Divorce

DYI renovations are not for the faint-hearted. The limits of your relationship will be tested. If you search ” home renovations and… ” you will see that divorce auto populates for you. There is no doubt that renovating a home is stressful.  Just remember the potential return on your investment and how much better your home will look upon completion of the upgrades! Have all aspects of your project planned out and clearly communicate your goals with each other.

When in doubt seek assistance from a professional. If you have had a pleasant experience with a general contractor, handyman, designer, etc. please post their information in the comments section below. I’d love to give credit where credit is due especially in a field where the workmanship can vary drastically.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s