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Is Remodelling Worth the Effort for Resale?

Is Remodelling Worth the Effort for Resale?

At some point during the chaos of every remodel, one question is asked. “Is it worth it?” Is it worth the upheaval? Is it worth the cost? Most important, is it worth the effort when it comes time to sell?

The answer: it depends.

It depends on where you live and what you choose to remodel. For example, the West Coast sees a higher return than does the Mid-Atlantic, according to CNBC.

With regard to specific projects, the 2018 cost-vs.-value report from Remodeling Magazine shows that smaller upgrades vs. larger remodels get you the most bang for your buck.

According to the report, those who remodel on a massive scale should expect a return of 56%. This is less than the steady return of 64% over the past two years.

Why the drop? Craig Webb, editor of Remodeling Magazine, believes it is because some real estate professionals suspect their local market may be reaching its peak. He explains, “Consequently, spending a lot of money does not automatically mean your house will just ride the escalator up and be worth a lot more.”

So, if you are planning a remodel in 2018, the rule of thumb is to keep it simple. Forgo a major kitchen overhaul for a simple upgrade that could recoup you 81.10% vs. 53.50%.

Instead of building that addition to the master suite (ROI 48.3%), consider something with more curb appeal, such as a new garage door (ROI 98.3%), manufactured stone veneer (ROI 97.10%), or a wood deck (ROI 83%).

When asking yourself if all the effort is worth it, keep your real estate agent in mind. This professional knows your market inside and out and can best advise you about whether your potential remodel will achieve the return you desire. Seek his or her input before starting your next project.

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