Is a Home Upgrade Worth the Cost?
If you’re considering a home remodeling project, the big question is this: Will you recoup your costs when you sell?
Although the real estate market is thriving in many areas of the country, that doesn’t necessarily mean undertaking a major remodeling project is the right decision. In some cases, it’s not. For almost all major projects, you probably won’t recoup all of your costs when you sell.
On the other hand, almost all home remodeling projects do add some kind of value to your home and just because you won’t get a 100 percent return on your investment doesn’t mean you shouldn’t consider making upgrades. Almost all projects do have aesthetic value to you as the homeowner and—more importantly—may improve your home’s “sell-ability” when it comes time to put your home on the market.
Using a wide range of statistics and surveys, Remodeling Magazine has been tracking key remodeling projects since 2002. The data is compiled into their annual “Cost vs. Value Report,” which shows the national average percentage of costs recouped after selling. As you can see from the sample figures below, the percent of costs recovered can vary greatly.
Keep in mind that these figures are national averages—based on mid-range projects, as opposed to upscale renovations—so the return on your particular remodeling project may be different. The costs and percentage of those costs recovered can also vary based on different areas of the country, the different types of neighborhoods (urban vs. suburban) and other home-specific factors.
Before starting any project, make sure you discuss your options with your real estate agent as they can help you determine if remodeling is the right decision.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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