For over 20 years Remodeling Magazine has conducted annual surveys of over 6000 Realtors, giving them 23 home remodeling project specifications and average costs and asking, How much would this project increase the sale price of the home? Typically, each year exterior cosmetic improvements (i.e., garage door, siding, stone veneer, new door) have the highest return for the home’s asking price, for a good first impression is key for a potential buyer. Still, the reported speculation can be a useful to realize that a well-designed and built home remodel that you want to enjoy now will likely bring a monetary return on investment when it is time to sell in the future.
According to the Remodeling 2023 Cost vs. Value Report the greatest return increase from last year is with a minor kitchen remodel, going from a 71.2% return in 2022 to a 90.2% return in 2023. A midrange bathroom remodel also increased from 58.9% in 2022 to 66.7% in 2023. In a time when the supply of homes to buy are low and the mortgage interest is higher, people still value a home that is move in ready so they can buy the most home they qualify for and not feel the need to remodel. The reason Realtors predict an upscale remodel for a kitchen or bathroom has a lower rate of return is because of the impression that it was tailored to the homeowner’s style and tastes, which a buyer may not have made the same selections. In the last ten years though, a major kitchen remodel and upscale bath remodel had rates of return in a stronger economy (e.g., 2014) of 74.2% and an 63.6% respectively, and in the last ten years have averaged over 60% recoupment of cost, so if a homeowner plans on to wait to sell in a better economy, they may realize a greater return on investment on major remodel’s than what the 2023 survey is reporting.
The data shared here is for the Mountain Regional area which includes Phoenix/Tucson AZ, Boise/Idaho Falls ID, Salt Lake City UT, Las Vegas/Reno NV, Pueblo CO, and Albuquerque/Santa Fe NM. These are popular projects that homeowners are requesting of us in the Phoenix area ranked in order of highest estimated return based on if one was selling at this time.
*A Minor Kitchen Remodel included new energy efficient appliances, refacing cabinetry, new countertop, sink, faucet flooring.
**A Midrange Bath Remodel included replacing all fixtures with a new tub/shower, solid surface counter with an integral sink, recessed medicine cabinet, ceramic tile floor and vinyl wallpaper.
***A Midrange Kitchen Remodel included new energy efficient appliances, semi-custom cabinets, an island, custom lighting and new resilient flooring.
****An Upscale Bath Remodel included reconfiguring the layout, separate soaker tub and shower, double sinks with mirrored medicine cabinets with a stone countertop on custom cabinets, high end faucets, private toilet room, floor tiles in an intricate pattern with in-floor heating.
Happy Home Remodeling!
© 2023 Zonda Media, a Delaware Corporation. Complete data from the Remodeling 2023 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
To see last year’s article on: 2022 Cost vs Value Report
Are You Ready for Monsoon Storms?
Help Cook Remodeling be Award Winning Again with Your Vote!
Patriotic Cauliflower N’Ice Cream
SINCE 1979