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Renovation ROI

December 4, 2016 by Doug Haldeman

Hammer on Stack of MoneyAs homeowners, we often feel like a home improvement will give us a positive Return On Investment(ROI).  The info-graphic shown from Remodeling’s 2015 Cost Vs. Value Report shows that most home improvements will give a negative return.  It is important to point out, the return shown doesn’t use the traditional terminology for ROI.  In this info-graphic, the ROI reflects the final value for each dollar spent.  For instance, if you do a $100 improvement and get an 85% ROI, the final value of the improvement is $85.  Typically we would show this as a -15% ROI.  These numbers are courtesy of Remodeling Magazine.

Midrange                                    2016 National Averages

Project Job Cost Resale Value Cost Recouped
Attic Insulation (fiberglass) $1,268 $1,482 116.9%
Backup Power Generator $12,712 $7,556 59.4%
Basement Remodel $68,490 $48,194 70.4%
Bathroom Addition $42,233 $23,727 56.2%
Bathroom Remodel $17,908 $11,769 65.7%
Deck Addition (composite) $16,798 $10,819 64.4%
Deck Addition (wood) $10,471 $7,850 75.0%
Entry Door Replacement (fiberglass) $3,126 $2,574 82.3%
Entry Door Replacement (steel) $1,335 $1,217 91.1%
Family Room Addition $86,615 $58,807 67.9%
Garage Door Replacement $1,652 $1,512 91.5%
Major Kitchen Remodel $59,999 $38,938 64.9%
Manufactured Stone Veneer $7,519 $6,988 92.9%
Master Suite Addition $115,810 $74,224 64.1%
Minor Kitchen Remodel $20,122 $16,716 83.1%
Roofing Replacement $20,142 $14,446 71.7%
Siding Replacement $14,100 $10,857 77.0%
Two-Story Addition $171,056 $118,555 69.3%
       

Upscale                                        2016 National Averages     

Project Job Cost Resale Value Cost Recouped
Bathroom Addition $79,380 $45,006 56.7%
Bathroom Remodel $57,411 $32,998 57.5%
Deck Addition (composite) $37,943 $21,877 57.7%
Garage Door Replacement $3,140 $2,830 90.1%
Grand Entrance (fiberglass) $7,971 $5,545 69.6%
Major Kitchen Remodel $119,909 $73,707 61.5%
Master Suite Addition $245,474 $140,448 57.2%
Window Replacement (vinyl) $14,725 $10,794 73.3%
Window Replacement (wood) $18,087 $13,050 72.1%
https://media.blubrry.com/smart_with_your_money/content.blubrry.com/smart_with_your_money/232.2_12.4.16_RenovationROI.mp3

Podcast: Play in new window | Download

Filed Under: Contractor, Home Maintenance Tagged With: Doug Haldeman, Tammie Haldeman

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Call or Text: (314) 472-DOUG (3684)
Email: [email protected]
Visit: 1120 Wolfrum Rd #201, Weldon Spring, MO 63304

Guild Mortgage Company, LLC is an Equal Housing Lender Company NMLS #3274. Individual NMLS #298419. 1120 Wolfrum Rd, Ste 201, Weldon Spring, MO, 63304. Doug Haldeman is an employee, but Tammie Haldeman is NOT an employee of Guild Mortgage Company, LLC. www.nmlsconsumeraccess.org
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