Do Home Renovations Increase Resale Value?

Maybe you’re considering renovating your master bath or kitchen – or doing something simple like changing out the toilets or garage door. There are plenty of reasons to do projects like these but one I hear most often is “to increase resale value.” But does it really do that?

According to the Cost vs. Value 2022 report, below are the national averages for what you can expect to recoup from various home renovation projects.

A few data points worth noting before your next renovation –

(1)  Outside curb appeal matters. People really care about what their house looks like to others who drive by. Stone finishing, garage doors, and front doors offer a good return.

 (2)  There is a great return on minor ($20,000 to $30,000) renovations to the kitchen, but the more you spend on it, the less your return on investment. A $100,000+ renovation returns only half of that back to you when you sell.

(3) Not one project returns greater than 100%, so there is a cost to you when making renovations.

Of course, resale value is not the only reason to do a home renovation project. They can make your home more usable and enjoyable while you live there. Just don’t excuse an elaborate budget by convincing yourself you will get it all back eventually!

For a full list and to get more geographic-specific data, visit their website here.

Happy Planning,

Alex

This blog post is not advice. Please read disclaimers.