When it comes to remodeling your home, it’s not just about the money that you sink into the project, but what kind of return you can expect to get on that investment.
For example, turning your unfinished attic into an extra bedroom with its own bathroom and shower can cost upwards of $50,000, but most people earn back about 73% of what they spent when they later sell the home. Not too shabby, especially if you factor in that you’ll probably be getting several years of use out of that extra bedroom.
The real remodeling disasters that you want to watch out for are the ones that are going to cost you big money now without an extra pot of gold waiting when you sell it at the end of the rainbow. The following five remodels are projects that barely earned owners 50 percent back on the money they spent—and some earned back less than 50 percent!
Upscale garage addition. Having a nice new garage where you can keep your cars protected from the elements and store things away neatly without clutter that makes you look like a hoarder can seem like a great idea to homeowners. Unfortunately, statistics show that garage additions only earn their owners back 52.1% of the money they spend on the remodel. Worse, some of these cost upwards of $80,000!
Upscale master suite addition. Just like with the garage, redoing your master suite to make it feel high-class might seem like a no-brainer to get extra money back when you sell. The problem, however, is that most people tend to have very personal preferences regarding what they like in a master suite, and unless you just happen to find the perfect buyer, you’re likely to be out of luck. The average return on a master suite remodel was 50.5%. And the cost? A whopping average of over $225,000. You could buy a new house for that!
Backup power generator. Backing up your power is just practical, right? Homeowners who thought this learned the hard way that apparently buyers just aren’t buying in to generators. This one doesn’t cost as much as some of the others on this list—just under $15,000 on average – but the return is worse at 47.5%.
Sunroom addition. Some people really love the idea of a sunroom. Did anyone pick out the key word in that sentence? “Some.” Unfortunately, where buyers are concerned that ended up turning out to be “a few,” with people seeing less than a 46% return on their investment. And just how much is that investment? On average, sunrooms cost over $74,000.
Home-office remodels. This one probably comes as a surprise to a lot of you, because a home-office seems like a fairly standard desire that a lot of people have. Even people who don’t technically work from home often like to have a dedicated space where they can keep their business information. For whatever reason, though, this doesn’t translate into a high return rate on your investment. On average, homeowners spent just under $28,000 on home-office remodels and made back less than $12,000. That translates to a return of just 42.9%!
So, what kinds of remodels should you do to ensure that you’ll recoup your money when you sell? In general, you want to look for things that are broad in their appeal. Besides the aforementioned attic bedroom, other good returns on your investment include:
- Replacement windows and vinyl siding
- Remodeling your kitchen
- Adding a deck
- Replacing your garage door
What remodel has the highest cost-to-return value? One you probably never would have guessed: replacing your entry door with one made out of steel.
Home remodeling project in progress image courtesy of Shutterstock