According to a new study published by “Today’s Homeowner,” most home improvement projects do not necessarily pay for themselves. To calculate a homeowner’s Return on Investment (ROI), researchers estimated the total value of certain improvements added to a home based on its sale price. Then, they divided the extra value by the project’s average cost.
Only one out of 34 different remodeling projects in 70,000 homes broke even: replacing a garage door. Some other improvements did come close to breaking even, however. Wood windows came in with an estimated 96 percent of the cost, and a screened-in porch was 93 percent. Replacing wooden decks with composite was another higher ROI, at 87 percent.
For all projects, the average was 69 percent ROI. Finishing a basement had the smallest ROI, at a mere 23 percent. For the right buyer, though, finished basements make all the difference.
Home improvements and repairs are expected to jump to $485 billion in 2023, with kitchen and bathroom renovations returning up to 75 percent of costs.
While the outlook might look grim, resale price is only one way to measure value. If a home renovation increases energy efficiency or reduces insurance premiums, it’s an ROI, but differently.
When it comes to kitchens and bathrooms, the best value for ROI is countertops and appliances, according to the study. Smaller kitchens tend to have a higher ROI than larger ones.
Are you thinking about remodeling your home or office? For premier, top-quality work, contact JFC Remodeling for a free estimate.
JFC Remodeling is committed to providing top-quality home reconstruction services to clients throughout Livingston County. With over 30 years of experience in the industry, our licensed contractors create unique, individualized, and polished renovations. Whether the site requires an improvement, repair, or is a new construction, you can trust our experts to deliver remarkable results. Call or email us to learn more.
Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/