Monday, November 12, 2007

Cost vs. Value Declines in 2007

Remodeling magazine's annual Cost vs. Value Report finds that kitchen and bath remodeling have declined in value, along with other home improvements across the board. While 10 of 22 projects tracked, including kitchens and baths, returned more than 90 cents on the dollar in 2005, none performed that well in this year's report.
A minor kitchen remodel (refacing plus laminate countertop) returns 83% in increased home value of its $21,185 investment, while a major kitchen remodel (semi-custom cabinetry, laminate countertop) returns 78.1% in resale value of its $55,503 investment. An upscale major kitchen remodel (custom cabinets and stone countertops) returns 74.1% in increased home value of its $109,394 cost.
A bathroom addition costing about $37,000 will return 66% of its cost as increase home value, while a $73,000 investment in additional bathroom returns 69% of its cost. Some 78.3% of the cost is recouped from a $16,000 bath remodeling job, but just 68.4% of a $51,000 bath remodeling job is added to the home's value. And investing nearly $100,000 to add a master bedroom/bathroom suite will recoup 69% of its cost in increased home value.

1 comment:

Ann said...

I am anxiously waiting for the 2008 report to come out. I suspect there will be some surprises. I am hoping they will break out the markets and not do a National Average.

Ann Porter