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WHICH REMODELING IS THE BEST INVESTMENT ?
"Improve, don't move" is the slogan of homeowners everywhere.
Remodeling is a way to move up in the housing market without moving out. It is also one way to enhance the attractiveness of your home if you are planning to sell. However, the amount you put in remodeling seldom yields a dollar-for-dollar return when you sell. It costs more per sq. ft. to remodel than to build new.
However, some remodeling projects are surer bets than others for recovering investment dollars. Some projects make good economic sense. In a tight market your home may sell quickly if it is perceived to be a better value.
The recovery percentages presented here are for selected improvements which give the best return on investment. Percentages are based on current remodeling costs for improvements on a 1,500 sq. ft. medium-priced home.
New Bath 92%
A 5'x8' bath is carved out of existing space and placed back-to-back with in-place plumbing. Fixtures: a simulated-marble countertop/sink unit; a fiberglass tub with shower; a toilet. Misc: casement window with a half-round top; vinyl flooring.
A second bath is a better investment than a third or fourth bath. Expensive features, such as whirlpool tubs, may not bring a good return on your investment.
Bathroom Remodel 77%
A dated 8'x10' bath gets a facelift: ceramic tile on the countertop, tub surround, and floor; paint cabinets and walls; install new sink and faucet; replace light fixture over vanity.
The location of the bathroom affects how much money to spend. Luxurious master baths are popular selling points, but don't invest that kind of money in a guest bath. If remodeling the home's only bathroom, consider two sinks and a separate shower and tub if there is room.
Minor Kitchen Remodel 102%
Update a 12'x16' kitchen no major structural changes. Brighten walls and cabinets with a coat of paint. Install vinyl flooring; laminate countertops; ceramic tile backsplash; double-basin sink. New appliances: dishwasher; drop-in gas range. The lower your investment in kitchen remodeling, the higher the potential for recovering costs.
Major Kitchen Remodel 90%
A 12'x16' kitchen is gutted. Install: laminate cabinets (16 lineal ft. of base cabinets and 8 lineal ft. of wall cabinets). New appliances: dishwasher; two-burner electric cooktop with grill; microwave oven; electric wall oven, refrigerator.
Real estate agents agree that a lackluster kitchen can hurt the sale of a home. However, a total kitchen make-over makes sense only if the colors and design have broad appeal. It is almost impossible to recoup the investment if the remodel is extravagant. If you remodel for your own satisfaction the return is not relevant.
Master Suite 87%
A 23'x12' suite is created by annexing a 9'x12' area into the master bedroom and bath. Features: walk-in closet; new oak-veneer doors; oak trim; papered walls; carpet. Misc: patio door; two windows. Bathroom: painted walls; ceramic floor tile.
It is cheaper to modify under-utilized areas than to add on since the roof, foundation and some walls exist. The project could hurt the sale of a house, if it eliminates a valuable third bedroom.
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