The Value of Remodels - Shirey Home Pro

Homeowners have long debated whether to remodel while living in the home and enjoying the changes or wait until they’re ready to sell. Cost is, of course, a significant factor in this debate. Some people believe there’s no point in spending money on remodels for their benefit when they might have to update those remodels again in the future when they sell. Other people believe there is no point paying for remodels right before you sell because there’s no guarantee that the next owners will like the changes, and that if money is being spent on remodels, they might as well enjoy the changes.

Well, we are definitely ending this debate! At its core, this debate is about the value of a remodel. How much does your remodel add value? How much does the remodel resell for, and how well does it hold its value in the market? Therefore, the answer to the debate depends on the type of remodel, its resale value, its cost, and its value to you personally.

The Type of Remodel and its Resale Value

Certain types of home updates provide huge value. These types are often dependent on the location of a home. The best way to determine the type of remodel with the highest value is to ask the professionals; we’re here to help! We’ve provided a table from Zonda Media that outlines the national and local costs of each type of home update, their resale prices, and the percentage of return on investment (ROI) they each provide.

Project Type

US Cost

US Resale

US Return

Seattle Cost

Seattle Resale

Seattle Return

Bathroom Addition | Midrange

$60,645

$32,347

53.3%

$82,218

$32,666

39.7%

Bathroom Addition | Upscale

$111,255

$40,526

36.4%

$146,700

$45,769

31.2%

Bath Remodel | Midrange

$26.138

$20,915

80.0%

$36,146

$16,933

46.8%

Bath Remodel | Upscale

$81,612

$34,000

41.7%

$107,451

$37,976

35.3%

Bath Remodel | Universal Design

$42,183

$25,812

61.2%

$58,151

$34.448

59.2%

Minor Kitchen Remodel | Midrange

$28,458

$32,141

112.9%

$32,271

$38,098

118.1%

Major Kitchen Remodel | Midrange

$82.793

$42,13.

50.9%

$95,542

$50,762

53.1%

Major Kitchen Remodel | Upscale

$164,104

$58,561

35.7%

$188,401

$72,971

38.7%

Primary Suite Addition | Midrange

$170,517

$55,097

32.3%

$219,378

$59,505

27.1%

Primary Suite Addition | Upscale

$351,613

$63,136

18.0%

$450,561

$71,743

15.9%

Deck Addition | Composite

$25,096

$22,199

88.5%

$28,639

$22,785

79.6%

Deck Addition | Wood

$18,263

$17,323

94.9%

$20,294

$16,861

83.1%

Entry Door Replacement | Steel

$2,435

$5,270

216.4%

$2,694

$4,229

157.0%

Grand Entrance | Fiberglass

$11,754

$9.959

84.7%

$13,922

$5,888

42.3%

Garage Door Replacement

$4,672

$12,507

267.7%

$5,290

$6,521

123.3%

Basement Remodel

$52,012

$36,905

71.0%

$68,358

$46,477

68.0%

Accessory Dwelling Unit

$166,406

$68,656

41.3%

$210,944

$68,237

32.3%

Window Replacement | Vinyl

$22,073

$16,657

75.5%

$24,029

$11,072

46.1%

Window Replacement | Wood

$26,781

$18,764

70.1%

$29,669

$14,366

48.4%

Siding Replacement | Fiber-Cement

$21,485

$24,420

113.7%

$29,743

$16,852

56.7%

Siding Replacement | Vinyl

$22,073

$16,

96.5%

$25,656

$16,848

965.7%

Manu-factured Stone Veneer

$11,702

$24,328

207.9%

$13,643

$12,244

89.7%

Roofing Replacement | Asphalt Shingles

$31,871

$21,501

67.5%

$45,077

$19,283

42.8%

Roofing Replacement | Metal

$51,865

$25,972

50.1%

$75,867

$20,217

26.6%

Backyard Patio

$51,454

$23,672

46.0%

$59,075

$14,166

24.0%

Backup Power Generator

$13,534

$12,902

95.3%

$17,225

$8,686

50.4

HVAC Conversion | Electrification

$19,484

$14,053

72.1%

$26,014

$9,575

36.8%

Solar Power Installation

$55,937

$16,625

29.7%

$69,330

$16,786

24.2%

What you can take from this information is if you are selling your home soon and want to make high-value changes that increase your home’s resale value, you should complete the projects with the highest percentage of return on investment in the Seattle area. These projects include siding replacement (fiber-cement or vinyl), electric HVAC conversion, and garage door replacement.

However, if you are not selling your home soon, you’ll put more stock into other factors of the choice to remodel more than return on investment/high value. You’ll care more about the cost of the remodel you want and the personal value it has for you.

The Remodel Cost

The price tag is an obvious factor in choosing when and how to remodel. For instance, if you're considering remodeling a bathroom but unsure whether to do it for personal needs or to increase your home's value, the cost could help you decide. The cost of an upscale bathroom remodel in the Seattle area is about $107,451, with a resale price of about $37,976. If you'll be living in your home for a long while after the remodel is finished, then the usage you can get out of the upscale, updated bathroom makes the low ROI easier to swallow. On the other hand, a mid-range bathroom remodel in the Seattle area costs about $36,146 and resells for about $16,933. If you're selling your home soon, the higher ROI of the midrange bathroom remodel makes it the better choice.

Another thing to remember is that when you choose to remodel a room in an upscale way, it will cost more, but the higher cost will be worth it because it means the remodel will last longer. The higher-end choices in an upscale remodel often have longer lifespans than those made in mid-range or low-cost remodels. This means that not only can you enjoy your upscale remodel for a long time, but so will the next owners. You won’t need to remodel again when you’re ready to move because your upscale remodel will still be in good shape!

The Remodel’s Personal Value

Sources

https://www.jlconline.com/cost-vs-value/