Update Your Home with Bathroom and Kitchen Renovations
When considering a major remodeling project, like a bathroom or kitchen remodeling job, the homeowner has to look at two factors. The first factor is how much the remodeling job will improve their use and enjoyment of the home. The second factor is how much the remodeling job will improve the resale value of the home. The more expensive the proposed remodeling project, the more of an impact it has to make on the use and enjoyment of the home in order for it to make financial sense to complete the project. Kitchen and bathroom remodeling jobs tend to be moderately to very expensive, depending on what all needs to be done. Therefore, it is important that a homeowner know that he or she can recoup much of the costs of a remodel when they go to sell the house.
According to the 2017, Cost vs. Value report, nationally, bathroom remodeling jobs cost an average of just under $19,000 and increase resale value by just over $12,000, which means that homeowners recoup almost 65% of the costs of a bathroom remodel in a resale. Nationally, kitchen remodels are split into two groups: major and minor kitchen remodels. Minor kitchen remodels cost an average of just under $21,000 and increase resale value by almost $17,00, which is more than 80% of costs. Major kitchen remodels cost an average of just over $62,000 and increase resale value by just over $40,000, which is 65% of costs.
Of course, local numbers are more important than national numbers, because price increases depend on what is available in your neighborhood. New Jersey is considered to be part of the Mid-Atlantic region. Bathroom remodels are a little less profitable in this region, with the average cost being just under $20,000 and the increased resale value being just under $12,000, which makes it 59% of costs. Major kitchen remodels average just over $64,000 and increase resale value by just over $38,000, for just over 59% recoup value. Minor kitchen remodels average just under $22,000 and increase resale value by just over $16,000 for an almost 76% recoup value.
What do these numbers mean? Well, first they show you that kitchen and bathroom costs in the Mid-Atlantic are a little higher than they are nationwide. This is not really surprising; the mid-Atlantic region has much older homes than much of the rest of the nation, which can mean more extensive work, including electrical rewiring, may be part of a remodeling project.
It also shows that, while a seller may not recoup quite as much of these increased prices in a resale, bathroom and kitchen remodels remain solid investments for a homeowner. However, given the differences in price ranges for major and minor kitchen remodels, these numbers certainly suggest that you want to weight the cost of your proposed remodeling against what you are likely to recover in a resale as well as the increase in quality-of-life that your remodeling project will bring.
At NJ Home Builder, we are experts at designing remodels that maximize both your resale value and your increase in quality-of-life.