We’ve all seen home improvement shows where an investor flips a home and makes thousands. Or where the realtor and remodeler come in and compete to get you to stay or move. They also show how the home increases in value after the remodel. Not to say that you can’t make money on a home remodel, however, it’s doesn’t always happen like it does on TV.
Returns on Common Remodeling Projects
Although the 2021 Cost vs. Value Report does look at nationwide information, they also survey specific cities in the U.S. Two cities included in the 2021 report are Manchester, NH, and Worcester, MA. However, because we remodel within a large part of New Hampshire and Massachusetts, we’re going to pull data from the Cost vs. Value Report’s New England averages.
The two most popular home remodels we’ve done in the past few years are kitchen and bathroom remodels. However, both have several categories. Most homeowners do what the report classifies as a “Major Kitchen Remodel – Midrange”, meaning the layout of the kitchen doesn’t change much but we replace everything. This type of remodel costs, on average, about $78,000 and returns $43,000 – or just over 55%.
There are also three classifications for a bathroom remodel: midrange, upscale and universal design. The midrange and universal design options will both return about 60% of your investment, however, their cost differs significantly. That’s due to the fact that universal design intends for the homeowner to age in place so it requires different, more expensive elements.
Highest & Lowest ROI
Surprising to many, the highest return on investment (ROI) in the New England region is a garage door replacement! It returns about 95% of the approximately $4,000 required for a new insulated steel garage door with windows. The lowest return on investment is the upscale master suite addition at 46%, with a price tag in the low-to-mid $300,000 range. However, at this price you get more than just a bedroom and bathroom. It’s often what people want when they need an in-law suite for a multigenerational home. And if you invest this in a property, chances are good you’re not selling anytime soon.
Things to Think About Regarding ROI
Although you likely won’t make all your money back after a home remodel, you need to think beyond what you will recoup when you sell. There are other ways your home remodel can benefit you.
- An exterior remodel of new siding or a roof may only return between 60-70% of your investment. However, while living in the home, you will likely save money on heating and cooling costs.
- When thinking about a kitchen remodel’s return, also think about water and energy savings from upgrading to ENERGY STAR® appliances.
- Installing a new toilet that uses fewer gallons per flush and low-flow showerheads and faucets in your bathroom remodel can save more than 20,000 gallons of water per year, which equates to savings on your water bill!
Contact Us for All Your Home Addition & Remodeling Needs
Whether you’re looking for a small bathroom remodel or a large home remodel and addition, G.M. Roth Design Remodeling is the team to call. Our staff has experience with all types of projects. Call us today at (603) 880-3761 or fill out our contact form for your free consultation.