This is a common question from homeowners, right after How Much Will It Cost? You’re putting $100k, for example, into remodeling your home, and you want to know how that will translate into the sale price when you’re ready to move.
A good place to start for exploring this question is the Cost vs. Value report for home remodels. This report, issued every year for 101 markets throughout the United States, is a helpful resource for understanding how various projects compare in resale value, and what buyers are looking for in your market.
For the Twin Cities, the report looks at 22 home remodel projects and finds that the average cost return was 56.8%. Exterior projects such as a new garage door, new siding, or window replacements tend to have the highest returns (56-96%), reflecting the value of a home’s curb appeal. If you’re thinking of a kitchen remodel, a minor one has a higher return (up to 74%) than a more personalized major remodel (46-53%). The lowest returns come if you want to build an addition of a bathroom or master suite (41-50%).
Designing a Home that Supports Your Well-being
The financial aspect is only one part of the returns you’ll get on a home project: you’ll also want to explore the value of your project for your physical and mental health, well-being, and joy. It’s harder to put a number on those, but they have significant value in your life.
First, ask how long you’re planning to live in your home. If you’re only going to be there for another 2-3 years, then it’s probably worth weighing the financial returns more than other factors. But if you’re going to be in the house for 3+ years, it’s worth weighing the value of your quality of life when you have an efficient space that works well for your needs.
We work with many people who plan to stay in their homes for a while, and are visibly frustrated with their kitchens. They want to feel more flow, ease, and efficiency when they cook. One person called and said, “I hate my kitchen and I end up ordering take-out all the time!” When you have a kitchen that’s designed to meet your needs, the returns for your health and well-being can be significant.
There are many ways to design a home that supports your well-being, including:
- Ensuring that your children have their own bedrooms
- Creating a dedicated home office space so that you can concentrate better
- Remodeling a bathroom so that it feels relaxing and cleansing
- Creating an outdoor space that makes it fun to have friends and family over.
Consider Durability and Quality
Two other factors in your financial returns are worth mentioning here: the durability and quality of the materials and finishes you choose. Well-built cabinets, for example, can last decades, while poorly-made, cheap cabinets may only last a few years. The well-built cabinets cost more, but can deliver greater value and durability. So it’s worth considering how long you want your products and materials to last.
The quality of finishes you choose are also important. Many of our clients choose higher-quality materials that may be better for indoor air quality and physical health. Such materials can include:
- Solid-wood cabinets
- Natural flooring materials and finishes
- Healthy insulation and drywall materials
- Low-VOC paints
These materials might have a lower financial return, but the returns for your physical health can be significant.
There are lots of factors to consider about the potential returns on any given project. Wondering what yours might be? Give us a call–we can give you an idea.