Many homeowners assume that when they renovate, remodel, or add livable space to their home, they increase the property value. And while that’s technically the case, it’s a little more complicated than that. In fact, many home improvement projects cost much more than the value they add to a home.
The Average Cost and Value for 5 of the Most Common Home Renovations
For instance, ask yourself this question. If you spend $50,000 to renovate your kitchen, and it adds $37,500 to your home’s value, was it worth it? The answer to that question depends on how much you’re going to use it before selling the home. If you’re only interested in adding value to your home, there are many renovation projects you should avoid.
On the other hand, if you are planning on living in the home for a long time, the renovation could significantly improve your quality of life. So, it all depends on what you’re doing. But for those interested in learning more, here are the costs and values of five of the most common home renovation projects.
1. Adding a Bedroom
According to Home Guide, the cost to build an additional room onto a home is between $22,500 and $74,000, averaging out at $48,000. On the flip side, an extra bedroom can add between $30,000 and $50,000 to your home. So, there’s a chance that you could gain immediate equity by adding a bedroom to your home.
2. Bathroom Renovation
According to Home Advisor, bathroom renovations typically cost between $6,604 and $16,413, which averages out to about $11,018. Adversely, a bathroom renovation could add up to 67.2% of the cost to your home’s value, which would equal about $7,404. The added value may be less than the cost, but that’s still a significant return on a home improvement project.
3. Renovating a Kitchen
According to Home Advisor, remodeling your kitchen could cost between $13,464 and $38,206, with an average cost of about $25,656. The added value of a kitchen renovation is between 50% and 60% of your project’s cost.
So, the top-end average would be about $15,393. Like the bathroom renovation, you won’t receive immediate equity, but a kitchen renovation will add significant value to your home.
4. Remodeling a Garage
According to Fixr, remodeling your garage can cost between $3,000 and $40,000, with an average cost of about $11,000. It is challenging to attain the added value for a remodeled garage because it depends on many factors. For instance, the added value of a finished two-car garage is different from a garage conversion.
If you’re making a significant change to the garage, you could see a substantial boost in home value. On the other hand, if you add a room but take away a garage, it might not add too much value in the long run. Either way, a remodeled garage can impact homebuyers, add a wow factor to your property, and ultimately result in a higher sale.
5. Replacing the Roof
According to Zillow, the average cost for a new shingle roof is $22,636. The average return on an asphalt shingle roof is about 68.2%, which equals about $15,247 based on the average cost.
That said, though replacing your roof will not result in an immediate return, it might be worth the expense. A damaged or old roof could negatively sway buyers and significantly impact your home’s ability to sell. So, if your home desperately needs a new roof, it might be in your best interest to replace it.
Do You Want to Sell Your Home in Northeast Florida?
Are you thinking about selling your home in Northeast Florida and want to speak with a professional about your options? If so, you should contact the Welch Team today! Our dedicated team of real estate experts would be happy to answer all of your questions and help get your house on the market.
Also, are you curious about how much your home is currently worth? Get your instant estimated home value for free!