Are you trying to decide the best return for your remodeling project for 2006? This wonderful time of big dreams and goal setting has put a handful of projects in my lap for the coming year. Reading this article from the National Association of Realtors is making me glad we are remodeling the bathroom and not the kitchen this year.
Kitchen and bathroom remodeling projects are returning more of a homeowner’s investment than ever before, according to the 2005 Cost vs. Value Report published by the National Association of Realtors in REALTOR® Magazine and by Hanley Wood LLC in Remodeling magazine.
Many homeowners who complete midrange bathroom remodels can expect to make money; the cost on a national average for this project is $10,499, and the return is $10,727, or 102.2 percent, compared with 87.5 percent in 2002. On average, major midrange kitchen remodels cost $43,862 and return $39,920, or 91 percent of the costs to remodel, up from 66 percent in 2002.
Nationally, homeowners who add an attic bedroom spend an average of $39,188, and on resale, they recoup 93.5 percent of the cost. Master suites, however, do not fare as well; an upscale addition, which costs $137,891 on average, returns only $110,512 on resale, or approximately 80.1 percent of the remodeling expense.Realtor.Org.Hat Tip Hot Property at Business Week.
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Thanks for the article. The BusinessWeek article was great!
Brandon Hopkins
There definately is a large difference in the cost of a kitchen remodel as compared with the cost of bathroom remodeling. Since the bath is such an important room when selling a home, updating your bath rather than kitchen could be a smart move in today’s economy. This is especially true if you need to sell now for some reason. I will not only increase the value, but will help it move faster.
I agree the bathroom is a very important factor for your homes value and appeal. However, I would say if someone was looking to buy a home the kitchen would stand out more. Everyone knows a kitchen remodel can be very costly and if they are going to buy a home that needs the kitchen updated it can scare them away being they would have to spend a lot of money to update it. The kitchen in my opinion is much more appealing than if the bathroom was remodeled. I would stick the money into the kitchen and try to fix the bathroom up with new flooring, vanity, toilet, and some inexpensive accessories if you would like to move the home for more money.
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Having worked along side real estate agents and investors for years I can honestly say the kitchen has had the biggest bang for the buck on not only resale value but on how the buyers market chooses which how they are even interested in. As mentioned in other posts a run down kitchen means big bucks in a buyers eyes. So budget upgrades for the kitchen first and then what ever is left over allocate elsewhere perhaps the bathrooms.
Wow I wasn't aware that there were better times for remodeling certain rooms in the house. I'm curious what is best for this year? My parents have been slowly remodeling the kitchen, and the only thing left is replacing all the windows and staining the cabinets. I guess it's a good thing from previous comments that they've started on the kitchen.
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