What’s the Payback of a Remodeling Job When You Sell?

July 15, 2019

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Add a bathroom or update the kitchen . . . which delivers more bang for the buck?

Before you decide to start a remodeling or home improvement project, be sure to consider the impact this investment may have on your property’s resale value. In most cases, the value of your home will increase by only a fraction of what you spend on the project. But some projects return much more than others.

According to the Remodeling 2019 Cost vs. Value Report (www.costvsvalue.com), your best investment in the Boise area may be on garage door replacement — the highest return in the Remodeling report — and the worst return is on a backyard patio! More than 20 popular home remodeling and improvement projects are evaluated and ranked each year, nationally, by geographic region, and by metro area.

With an average job cost of about $3,600, the garage door replacement will add about $5,500 to your resale value — a remarkable 150% recovery of your investment. On the opposite end of the spectrum, spending $51,000 on a backyard patio will add only about $24,000 to your resale value — less than a 50% recovery of your investment.

Aside from the garage door replacement, which is relatively low-cost, the only other project evaluated in this year’s report that actually returns more, on average, than what you invest, is a “minor” kitchen remodel. For this project, an average cost of about $20,800 will add about $22,200 to your resale value — recovering about 106% of your investment.

(References to the Remodeling 2019 Cost vs. Value Report are © 2019 Hanley Wood Media Inc. Complete data from the Remodeling 2019 Cost vs. Value Report can be downloaded free at www.costvsvalue.com)