Looking to Remodel Your Home? What’s The Best ROI?
photo credit: Chad Crowell
Are you considering a move, but your current home value has made that impossible? What home improvements can you do to your current home that will freshen up the look and give you some additional living space? A U.S. News and World Report article compares several options and what would be a better investment for your families castle. You might want an extra bathroom, but would that be the best investment for your home? Even if you lost 50% of your cost of a bathroom remodel, you might argue that it could save your marriage or get those kids out of your throne room.
So what is a better ROI? A bathroom addition, family room, or a deck? Turns out the deck is a better return on investment, with a 85% return rate when you go to sell the home. A deck might now sound as glamorous as a new bathroom, but it will increase your outdoor living space and make your home seem larger. Decks are great for entertaining and can provide space for an outdoor bbq and patio furniture. Also, if maintained properly, decks can last for years.
A bathroom remodel will bring you back 78% of your costs when you sell, but an updated bathroom can be priceless. We just remodeled our guest bathroom and I can tell you that it has brought tremendous value back to our home. The bathroom was used more than our master bathroom, and everyone comments how clean and fresh it makes our home look. The total cost was under $3,000, and I personally think we would get back 100% of the cost.
The current downturn in the real estate market can be an opportunity for homeowners to negotiate construction costs with builders. If you received a quote a year ago, or even a few months ago, you might want to call the company back and try and negotiate. I was buying many of my supplies from Home Depot and then decided one day to stop in a small shop that sold molding. The molding company not only carried the exact same base molding and crown molding I was using, but they offered a weekend discount. On Saturday they give customers a 15% discount, and Sunday’s 20%. I asked the owner why the 5% difference between Saturday and Sunday, and was told football. Guys watch football on Sunday, and they need an incentive to get out and buy molding. I just laughed and enjoyed the 20% discount.
Do you have any home projects planned for 2009?
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Tyler @ Building Camelot Said:
We’ll be, or at least try to, add a patio this year. My wife is dying for some patio furniture and I want a nicer place to grill. I think a deck/patio is an awesome addition to any house!
I never thought about negotiating construction costs - I’ll have to keep that in mind when the weather gets a little nicer.
Posted on January 13th, 2009
Scott Said:
@ Tyler
My wife and I also researched patio furniture all last year and couldn’t find anything that really looked like it would last for years. We found some patio furniture at Target and Costco, but I was afraid it wouldn’t stand up to the rain or sun. I guess we could get some furniture covers or a tarp. I was also keeping my eye out for any deep discounts during fall or winter, but never found any for outdoor furniture. Hopefully this year:)
Posted on January 13th, 2009
jj-momscashblog Said:
Scott, I’d be interested in knowing how you remodeled a bathroom for $3,000. The last time I received estimates for my bathroom they were “all” in the $10,000. range. Needless to say I put that project off until another day. I think that day may be this summer. Did you do most of the labor yourself I can see that would be a big savings? I’m surprised that the deck brings a 85% return and bathroom is 75% I had always thought that the bathroom was the bigger return. Good info here. Thanks and now you make me really want my new bathroom! And I will make sure that this time I negotiate (or try) the price.
Posted on January 13th, 2009
Scott Said:
@ JJ
Yes, I sure did. I had to hire a plumber to relocate the copper and drain line, but the rest was done by my dad and myself. We put in new tile, wainscoting, a new pedestal sink, baseboard molding, crown molding, and new fixtures. My wife was very happy with the new bathroom, so I guess it passed inspection.
Posted on January 13th, 2009
Miranda Said:
We are putting in a sprinkler system and grass. We did a fence last year. Supposedly, a fence and yard has decent ROI. Since we’re doing a great deal of the labor, I sure hope so.
Posted on January 13th, 2009
Scott Said:
@ Miranda
New sprinklers and a lawn can add tremendous value and curb appeal. The best part of doing it yourself, you will know where all the pipes are located. Also, you will be able to use higher quality sprinkler heads and be able to do your own maintenance, since you installed them yourself. A great lawn is so much fun for the entire family to enjoy.
Posted on January 13th, 2009
Anthony Said:
One thing to consider when upgrading is finding out what features other homes in the area have that yours doesn’t. If not, you will be the home the least desirable, all others things being equal.
Posted on January 14th, 2009
Scott Said:
@Anthony
Very true. If remodeling the outside of the house, it’s probably a good idea to keep it within similar homes in the neighborhood. We have a neighbor that painted the outside of the house a baby blue color and I kept thinking that they must have gotten the paint for free. I guess that’s what makes life interesting.
Posted on January 14th, 2009
Funny about Money Said:
That IS interesting! A deck is the last thing I would have picked as the best ROI.
Hmm… I use the deck and the house’s two patios every day when the weather is good. But I use the bathroom every day, come rain or shine. In terms of living in the house, I’d rather have the bathroom updated than add a deck.
To my mind, you get a nonmonetary kind of return on investment from the improvements you make in your home: from the pleasure they give you or greater convenience or safety they provide. That’s why I think that, while you shouldn’t overimprove your house for the neighborhood, you should factor in how long you will be in the house and how much a proposed project will improve your daily life.
Posted on January 21st, 2009
Scott Said:
@ Funny about Money
I agree. A deck doesn’t seem as practical as an additional bathroom or bedroom, but it can extend outdoor living space. If a backyard has a large hill, a deck could be a perfect solution to offer a level living area. A family could have outdoor living space or a bbq area. Living in San Francisco when my wife and I were first married, we had many friends who had decks in the backyard. They could extend the living area from the house or apartment. Several places were only a few hundred square feet, but a deck made the apartment feel huge.
Posted on January 21st, 2009