Learn more about Remodel Cost vs. Recoup Costs for a Home
Remodeling a home offers the opportunity for homeowners to make the space their very own. Both smaller projects and full overhauls provide an outlet for personalities to shine through. Remodel projects not only spruce up your living space but can also add value to your home. The question is, how much value do remodeling projects add? Can you truly recoup the cost of your investment?
It’s no secret that remodeling jobs are a hefty investment, regardless of the size of your project. In physical dollars you pay for the labor, materials, and craftsmanship. The intangible cost is your time, from making important remodel decisions to the inconvenience of a torn-up space during construction.
The latest report on Cost vs. Value in 2022 from Remodeling magazine provides the following details on average remodeling costs for mid-range projects nationwide:
Bath – $27,164
Major Kitchen Remodel – $80,809
Deck Addition – $24,677
Overall, average project costs ranged from $2,206 to $356,945, depending on the size and nature of each job.
How much you recoup from your investment, or the estimated resale value, also varies by project. There is not a universal figure. A few examples from the report are:
Bath – 58.9%
Major Kitchen Remodel – 56.1%
Deck Addition – 62.1%
The average percentage of recouping costs in the 2022 report ranges from 46.3% to 93.3%.
The exact figures will vary year to year with market fluctuations. But the underlying lesson stays true. Regardless of the project, you will never recoup 100% of the cost of your remodel. The value of your remodeling project largely lies in the quality of life it brings you. Consider your current and future goals to determine whether the investment is right for you.
Not sure whether or not to remodel? Talk to our real estate agents today to get a clear picture of the benefits and costs of your remodeling project.