Remodeling: Cost vs. Value

I get asked a lot what projects provide the highest return on investment. The main thing to know is that there isn’t a one-size-fits-all answer. That is because the neighbors directly around you have everything to do with what your house value is. If your neighbors take good care of their house, it impacts your value. Additionally, if your neighbors are putting in high end finishes in their remodel then you can probably expect a higher return on yours than if your neighbors all have outdated kitchens and bathrooms. You don’t want to “over-improve” for your particular location and market.
There are some general guidelines that are helpful. Here are a few example Portland statistics for you:

Mid-range Major Kitchen Remodel:
Cost $58,124  –  Home Value Increase $44,268  –  Cost Recoup 76.2%
(That is 10% higher return than the national average)

Mid-range Average Bathroom Remodel:
Cost $17,360 – Home Value Increase $12,798 – Cost Recoup 73.7%
(Right about at the national average)

The takeaway: it might be a great time to add upgrades to your home. But be mindful about the cost of finishes and to not over-improve for your neighborhood. If you’d like me to come by and give you my take on you ideas, I’d be more than happy to!