{"id":14255,"date":"2020-02-27T09:50:10","date_gmt":"2020-02-27T17:50:10","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=14255"},"modified":"2024-03-22T11:19:57","modified_gmt":"2024-03-22T18:19:57","slug":"does-remodeling-increase-home-value","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/does-remodeling-increase-home-value\/","title":{"rendered":"Does Remodeling Increase Home Value or Offer Disappointing Returns?"},"content":{"rendered":"

It\u2019s the question on the tip of every homeowner\u2019s tongue. Does remodeling increase home value? Top-selling Phoenix, AZ, real estate agent Bill Watson<\/a> puts it simply.<\/p>\n

\u201cIf you spent $50,000 to completely change rooms, you’re going to get $25,000 to $35,000 back.\u201d<\/p><\/blockquote>\n

But there are a lot of variables that factor into this equation, including which rooms you choose to overhaul, your material selection, and whether you opt for styles that will be marketable in the future. What you\u2019ll get back also depends on your experience level: investors will have a better shot at turning a nice profit (by purchasing a home at a bargain) versus an owner who\u2019s picking out new bathroom tile for the first time and paid market value.<\/p>\n\n\n\n\n\n

\n
\n
\n \"homelight\n <\/div>\n \n

Upgrading Your Home? First, See How Much It's Worth<\/h3>\n

It’s helpful to have an idea of how much your home is worth before embarking on a project. Enter your address and answer a few questions about your home, and we’ll provide a preliminary estimate in under two minutes.<\/p>\n \n

\n Get Estimate<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n

Here we\u2019ll dig into the latest trends around American home remodeling and what some of the most popular projects have to offer \u2014 including the hard ROI data on kitchens, baths, and layout changes, and best practices for squeezing the most out of any investment you take on.<\/p>\n

What types of projects fall into the \u2018remodeling\u2019 camp?<\/h2>\n

Remodeling is a term used loosely in real estate to describe all sorts of home improvement projects, but if you want to get technical, a true \u201cremodel\u201d (versus an update, refresh, or renovation) is defined as any project that alters the structure or form of a property or in other words\u2026\u201dremakes it.\u201d\u00a0<\/a><\/p>\n

When you do major demolition, rip up worn floors, tear down walls that close off spaces, reconfigure entire layouts, or replace major elements of the home, you\u2019re in remodeling territory. (Think of the types of dramatic room makeovers you see on TV where there\u2019s lots of dust and chaos).<\/p>\n

Projects like applying fresh paint or swapping out hardware don\u2019t really count as \u201cremodeling.\u201d And in the same vein, if you call in a repair pro to fix the garbage disposal, that\u2019s not remodeling, either. It\u2019s just basic maintenance.<\/p>\n

Spending on American home remodeling is trending upward<\/h2>\n

Americans spend more than $400 billion a year<\/a> on improving their house. In fact, remodeling reached a new high of $424 billion in 2017<\/a>, growing over 50% since 2010, according to the Joint Center for Housing Studies 2019 \u201cImproving America\u2019s Housing\u201d report.<\/p>\n

And while houses are built to be sturdy and last for centuries<\/a>, that doesn\u2019t mean they don\u2019t age. There\u2019s a reason why homeowners bite the bullet and gut rooms that need work. Eventually you\u2019ll reduce your own living enjoyment and your ability to market the property to future buyers if you fail to do any updates. Plus, many properties aren\u2019t the young spry chickens they used to be. The median age of owner-occupied homes in the U.S. is 37 years old<\/a>, while 40% of the nation\u2019s 137 million homes<\/a> are at least 50.<\/p>\n

You can make small updates<\/a> here and there \u2014 or liven up a room with a simple coat of paint<\/a> \u2014 to keep your house looking fresh. However, when the tiles eventually start to detach from the floor or your main rooms start to feel entirely dated<\/a>, the writing\u2019s on the wall: it\u2019s time to think about some serious remodeling.<\/p>\n

Any smart homeowner wants to take on a remodel carefully and with an eye on the ROI \u2014 data from Home Advisor shows that most home remodels cost between $18,000 and $76,000<\/a>, and certain remodeling projects can get out of hand\u2026 fast.<\/p>\n

\"A<\/a>
Source: (Becca Tapert \/ Unsplash)<\/figcaption><\/figure>\n

When in doubt, start with the kitchen<\/h3>\n

Watson, who\u2019s represented real estate clients for 23 years, always suggests tackling the kitchen first. As the heart of the home where family and friends gather<\/a>, the kitchen is often the most used room in the house<\/a>. While a roomy kitchen will sell, great appliances and a nice countertop flow make cooking dinner a joy. What a dream compared to cramped layouts and a stove that takes ages to heat up!<\/p>\n

What the data says on kitchen remodels:<\/h4>\n

No doubt about it: a well-remodeled kitchen<\/a> has the potential to \u201cwow\u201d buyers and help you maximize your home\u2019s value\u2026 but you won\u2019t get back every penny you spend. According to data from Remodeling Magazine\u2019s 2020 Cost versus Value report, kitchen remodels have an ROI ranging from 54%-78%<\/a> depending on the scope of the project and how upscale you want to go.<\/p>\n

Tips to maximize the value from your kitchen remodel:<\/h4>\n