Smart Remodeling Choices With Financial Benefits

​You love your home, but recognize that it could benefit from a facelift. The million dollar question is always, is it moneySmart Remodeling Choices With Financial Benefits Blog well spent? This question arises for those wishing to remain in the home for the foreseeable future or those who are considering putting the home on the market. ​

NAR’s Remodeling Impact Report can help you identify some improvement areas that are likely to bring you a return on your investment. The Report ranks the interior projects based on the most value and cost recovery a homeowner can receive.

Drumroll please… The top 5 project that demonstrated the best overall value for sellers are: 

HARDWOOD FLOORS

Refinishing existing hardwood floors received the most money-back value. Refinishing the hardwood brights the home and makes it more attractive.

APPROXIMATE COST: Remodelers from the  the National Association of the Remodeling Industry (NARI) estimates the cost of refinishing hardwood floors to come in about $2,500.

APPROXIMATE BENEFIT: NAR REALTORS® estimate that the increased value for sellers comes in right at the estimated cost providing 100% recovery of costs. Keep in mind that this can also impacts the first impression of the home... priceless.

INSULATION UPGRADE

OK, this isn't as much about the beauty of the home, but is about the functionality and mechanics of the home. Upgrading the insulation was reported as the 2nd most cost effective project.

APPROXIMATE COST: NARI Remodelers estimate that upgrading a home’s insulation will cost $2,100.

APPROXIMATE BENEFIT: NAR REALTORS® estimate that sellers can increase the value of their home by $2,000 for this upgrade delivering a 98% return on investment.

ADDING HARDWOOD FLOORS

If your home doesn't already have hardwood floors, adding them has shown to result in 91% return on costs.

APPROXIMATE COST: NARI Remodelers estimate the cost of new wood flooring to be $5,500.

APPROXIMATE BENEFIT: NAR REALTORS® estimate that the increased value for sellers is $5,000.

HVAC REPLACEMENT

Energy efficiency is of growing importance to many buyers. Replacing the HVAC system can improve energy efficiency and update worn-out features in the home.

APPROXIMATE COST: NARI Remodelers estimate that the cost of replacing an HVAC system is $7,000.

APPROXIMATE BENEFIT: NAR REALTORS® estimate that the increased value for sellers is $5,000, which calculates to 71% of investment. 

CONVERTING UNFINISHED SPACE INTO LIVING AREA

The report framed this as finishing out basement space. However, basements are non-existent in Florida so liken this to finishing out unfinished space in the home to expand the existing footprint.

APPROXIMATE COST: NARI Remodelers estimate that a basement overhaul will cost $36,000.

APPROXIMATE BENEFIT: NAR REALTORS® estimate that the increased value for sellers is $25,000. The cost recovery for a new living room in the basement area is 69%.

The NAR’s Remodeling Impact Report also highlighted the most and least expensive remodeling projects:

MOST EXPENSIVE PROJECTS

Completing a new master suite at a cost estimate of $112,500 (estimated cost recovery at 53%)
Converting an attic into a living area at $65,000 (estimated cost recovery at 61%)
Complete kitchen renovation at $60,000 (estimated cost recovery at 67%)
Adding a new bathroom at $50,000 (estimated cost recovery at 52%)
LEASE EXPENSIVE PROJECTS

Upgrading insulation at a cost estimate of $2,100 (estimated cost recovery at 95%)
Refinishing hardwood floors at $2,500 (estimated cost recovery at 100%)
Renovating a closet at $3,500 (estimated cost recovery at 57%)
*Disclaimer: The report provides a cost recovery estimate for representative remodeling projects. The actual cost of each remodeling projects and cost recovery are influenced by many factors including project design, quality of materials, location, age and condition of the home and homeowner preferences.