- Bargaineering - http://www.bargaineering.com/articles -

Best Value Home Renovations Revisited

Back near the end of July of ’05, I blogged about an article about the best home value renovations [3] which revealed that the only even money proposition was the addition of a second bathroom. A recent report by the National Association of Realtors and Remodeling magazine revealed that some home renovations actually earned you a profit.

A “mid-range bath remodeling” would cost the average homeowner $10,499 but boosts the value of your home by $10,727, or 2.2%. “Upscale residing” would cost you $10,393 but add $10,771 in value, or 3.6%. This is a slight improvement over the numbers revealed in my previous post about the best home renovations (by value).

Some other notable improvements were the conversion of an attic into another bedroom suite (bed and bath), which increased value by 93.5% of the cost, a deck increased value by 90.3%, a home office a mere 72.8%. However, all the percentages are much higher than previously reported home renovation values by a significant percentage. An attic bedroom was listed at 90%, a deck listed at 80%, and a home office was originally listed at 60%. It only fuels the debate as to the actual return value of a particular renovation but the relative return values are still the same (attic bedroom is better than a deck which is better than a home office, the same as before).

The report also revealed what we all probably understood – renovations are valued differently in different parts of the country. A window replacement was valued at 103% out west but only 83.7% in the south. A bath replacement garners an incredible 111.9% in the west, 104.4% in the east, but only a stingy 89.5% in the Midwest. It’s not entirely obvious (at least to me) why this is the case but it’s good to know.

(Photo: john-schilling [4])