Are Renovations Really Worth Their Cost?
When people think of having a home renovation, one of the things they consider is the value it will add to their home. Recouping your remodelling investment may be your goal when you sell your house. When it comes to resale value, however, all home improvements are not created equally. Consider these payback estimates for the most typical home improvement projects.
Payback value depends heavily on the real estate market and prevailing property values. If the market is slow, expect to see less payback than you would in a fast market. Also, consider the neighbourhood: if you remodel your house to twice the size of the other homes on the block, it is unlikely that you will be able to sell at double the price. Renovations tend to depreciate; therefore, renovations done 5-10 years ago have little or no value.