Home Improvement: A Cost vs Value Analysis
Imagine a scenario:
You have bought a new house with your spouse and have moved to your new house. You have to invest quite a bit amount of money for the home improvement. You probably want to make your house more beautiful than it is now. You have the money and have started to do home improvement. After finishing the whole thing, you start thinking – was this investment really worth it? Or probably could you utilize the money in a more efficient way?
Unfortunately, this is a very common story by now. Lots of people who want to do home improvement regret the choices they made after the work is done. This actually happens because they think about the resale value of it. Certainly, they plan to move to a bigger one probably at a stage. Will they be able to raise enough money?
So, basically the whole thing is about resale value. People do not have a clear idea about cost vs value regarding home improvement, this is why most of the time they regret it. Therefore, let’s discuss about cost vs value regarding some of the most common home improvement projects.
- In 2020, the project that had the most ROI was manufactured stone veneer. In this project, cement and aggregates are mixed with oxides for colors and then the mixture is poured into a mold to make stones but with a flat back. Therefore, it looks like a real rock but is easy to set on the wall. The average cost for this project is around USD 9350 and it has a resale value of USD 8940 dollars which is almost 95.6% of the investment.
- Another significant one in the list is garage door replacement. The estimation that we will be getting in this section includes the cost of removing a 16×7 garage door and then replacing it with a four-section garage door with a heavy-duty galvanized steel tracks where you are reusing the previous motorized garage door opener. Here, the estimated cost is around USD 3695 and the estimated resale value is USD 3490. The ROI here is almost 94.5%. This one is also significant because garage door replacement is not only a part of home improvement, but also a part of office design.
- Let’s move on to a little bit higher budget. You probably want to replace and relocate the existing bath-tub and toilet and set up designer sinks and closets and faucets. For such a big investment for approximately 5×7 sq feet bathroom, you might get an ROI of 93.2% if you invest almost USD 26000 and get back USD 24280.
- Sidings of a house is really important to hold the integrity of the building. Therefore, replacing or repairing siding is a very common project. If you are willing to do the project with fiber-cement, the average cost will be just above USD 17000 for a 1250 sq feet house. The resale value is almost USDD 13200 with an ROI of 77.6%. If you want to go for vinyl sidings, it will be more cost efficient and will help the sidings look fresher. The average cost for vinyl here is almost USD 14350 and the resale value is estimated to be around USD 10730. So, you will be getting an ROI of 74.7%. Both of these are indeed great deals.
We just mentioned only a few here. There are lots of more investments that have great ROIs. For example, 98.5% in minor kitchen remodeling and 91% in a major one, 90.3% in deck, patio, porch addition, 72.3% in vinyl window replacement etc. This is a never-ending list.
Certainly, homeowners or office owners have to keep in mind that these rates fluctuate based on the market price of the materials, or the region where you live in, also the service level that you will be offered. These are just an average estimation which will help you in your future home improvement projects.