Remodeling Magazine’s Cost vs Value Report 2018 Highlights Some Noteworthy Ways to Invest Wisely in Home Improvements that will Add to Your Home’s Value
Every year Remodeling Magazine releases a report on the average cost of home improvement projects vs the amount those projects add to the value of the home. In addition to national trends, they also study specific regions and metropolitan areas, including the DC Metro area.
Here are some interesting things that the Cost Vs Value Report 2018 shows about our DC Metro area:
1. Minor exterior improvements tend to have a high return on investment:
Garage Door Replacement: 95% of cost recouped
Manufactured Stone Veneers: 92.8% of cost recouped
Siding Replacement: 82.2%
2. Midrange upgrades tend to give a higher return on investment than high end upgrades:
Midrange Master Suite Addition: 57% vs Upscale Master Suite Addition: 50%
Wood Deck Addition: 88.4% vs Composite Deck Addition: 65.8%
Midrange Bathroom Remodel: 73.5% vs Upscale Bathroom Remodel: $59.2%
In my opinion, this is one of the most interesting annual reports that is released for the home building and real estate industry. It can give you an honest idea of what home improvements are really worth, and inform your decisions on how to improve your home.
The trends that remain true every year show us that minor, lower cost improvements give you the most bang for your buck. This is important to keep in mind for those of you who are thinking of selling your home in the near future: It is probably NOT cost effective to make major, high-end improvements on a home you will be selling in the next 5 years. Stick instead with improvements that will increase the curb appeal of your home and the aesthetic appeal of the interior spaces. These will give you more value.
It’s good to keep in mind that every home is different. Even two homes that are next door to each other could have a very different return on investment for an identical project. There’s no substitute for having an expert give you a straight answer, and I’m always available to do so. Feel free to get in touch with me about anything related to home building and real estate.