Remodels That Recover Their Costs Upon Resale

Is it possible to recoup all of your money invested in a remodel?

If you’re like most homeowners, you’re looking for both an emotional and financial return on your investment when it comes to remodeling, even if you don’t actually say so.  Addictively watching those home improvement reality house flipping shows has fueled your desire for home remodeling projects that can at least recoup their cost upon resale.  

Interestingly, four of the top five projects that return the most upon resale (on a national level) are not the sexy projects you would envision.  According to the Remodeling 2018 Cost vs. Value Report (www.costvsvalue.com) the top five projects that return the most upon resale based on national averages are:

1. Garage Door Replacement
2. Manufactured Stone Veneer  
3. Entry Door Replacement (steel)  
4. Deck Addition (wood)
5. Minor Kitchen Remodel

I know what you’re thinking…a new garage door, manufactured stone veneer and steel replacement entry door…whoop-de-doo (sigh). A kitchen remodel and deck addition…hell yeah! (HUGE grin).

The great thing about all of these projects is that the cost recouped upon resale within 5 to 20 percent of the job cost.  So you’re getting back almost as much as you put in!  However, it’s important to keep in mind that the cost recouped upon resale varies by geography.  For example, replacing vinyl siding with manufactured stone veneer commands top dollar in the Los Angeles market, recouping far more than 100 percent of the job cost.  You may not recover as much in other metro areas.

Should your remodel involve making changes to your kitchen, make sure you address the flow of the space.  For example, avoid installing an island in a narrow kitchen that’s not wide enough to reasonably accommodate it. Even though your kitchen may look great, installing an island that’s too big for your kitchen would 1) significantly reduce your kitchen’s functionality and 2) decrease the percent of job costs you’re able to recoup upon sale.  

In addition to checking out the most recent Cost vs. Value Report for your metro area, I also recommend consulting with a Realtor® that has their finger on the pulse of real estate sales and remodeling activity in your immediate and surrounding neighborhoods to help determine which projects are worth pursuing. While a remodeled kitchen is almost guaranteed to be the one of them, it’s good to know what else tops a home buyer’s list.