As a full time realtor I get asked the the cost vs. value question a lot! Although each situation is somewhat dependent upon the neighborhood you live in as well as what upgrades your house already has, the yearly cost vs. value report is always helpful as a guide if you are considering making improvements to your home. Something else I like my clients to consider is how long they plan to stay in the home after making the improvement. If you are planning to stay in your home for a while and it’s something your home needs or will make it more comfortable for you then how much return you will get on your investment may not be the number one priority. However, if you are only improving the home to sell, cost vs. value becomes a major focus.
Below are some of the numbers from the cost vs. value report.
On a national scale, the top five cost vs. value projects with the greatest ROI in the report’s “midrange” cost category are:
- Attic Insulation (Fiberglass) (107.7% ROI)
Average Cost: $1,343
Average Resale Value: $1,446 - Entry Door Replacement (steel) (90.7% ROI)
Average Cost: $1,413
Average Resale Value: $1,282 - Manufactured Stone Veneer (89.4% ROI)
Average Cost: $7,851
Average Resale Value: $7,019 - Minor Kitchen Remodel (80.2% ROI)
Average Cost: $20,830
Average Resale Value: $16,699 - Garage Door Replacement (76.9% ROI)
Average Cost: $1,749
Average Resale Value: $1,345
The top five cost vs. value with the greatest ROI in the report’s “upscale” cost category are:
- Garage Door Replacement (85.0% ROI)
Average Cost: $3,304
Average Resale Value: $2,810 - Entry Door Replacement (fiberglass) (77.8% ROI)
Average Cost: $3,276
Average Resale Value: $2,550 - Window Replacement (vinyl) (73.9% ROI)
Average Cost: $15,282
Average Resale Value: $11,286 - Window Replacement (wood) (73.0% ROI)
Average Cost: $18,759
Average Resale Value: $13,691 - Grand Entrance (fiberglass) (70.1% ROI)
Average Cost: $8,358
Average Resale Value: $5,855
At the other end of the spectrum are projects with the lowest returns on investment—improvements generally not in demand by the market. Again on a national scale, the five cost vs. value projects with the lowest ROI in the “midrange” cost category are:
- Bathroom Remodel (64.8% ROI)
Average Cost: $18,546
Average Resale Value: $12,024 - Master Suite Addition (64.8% ROI)
Average Cost: $119,533
Average Resale Value: $77,506 - Backyard Patio (54.9% ROI)
Average Cost: $51,985
Average Resale Value: $28,546 - Backup Power Generator (54.0% ROI)
Average Cost: $12,860
Average Resale Value: $6,940 - Bathroom Addition (53.9% ROI)
Average Cost: $43,232
Average Resale Value: $23,283
The five cost vs. value projects with the lowest ROI in the “upscale” cost category are:
- Major Kitchen Remodel (61.9% ROI)
Average Cost: $122,991
Average Resale Value: $76,149 - Master Suite Addition (59.9% ROI)
Average Cost: $250,687
Average Resale Value: $150,140 - Bathroom Remodel (59.1% ROI)
Average Cost: $59,979
Average Resale Value: $35,456 - Bathroom Addition (57.1% ROI)
Average Cost: $81,515
Average Resale Value: $46,507 - Deck Addition (composite) (56.4% ROI)
Average Cost: $39,339
Average Resale Value: $22,171
The 2017 Cost vs. Value Report compares, across 99 markets, the average cost of 29 popular remodeling projects with their average value at resale one year later. Average resale value is calculated based on estimates provided by real estate professionals. View the full report, including project descriptions and city-level data, HERE.
