What’s Your ROI on Remodels or Additions Around the San Mateo Area?

Carpenter working on remodel

So, you’re looking at that house for the third time and saying, ‘it’s not quite right.”  It needs
a new….  And, then you ask me what does it cost to do….?  You get the idea.  Whether it’s a new kitchen, windows, bathroom, roof or an addition to make the house perfect for you and your family, you need to have an idea of cost.  And then, what your ROI might be.

I am asked this kind of question fairly often.  What will it cost me to replace the windows?
Or, how much does a new kitchen cost?  My answer always is “it depends”.  It depends on quality.  It depends on vendor.  It depends, especially when it comes to that kitchen, on the appliances you choose and the kind of cabinets, or both.  Remodels and additions can be pie in the sky when it comes

Just in case you’re thinking about doing a little remodeling once you close escrow, here’s my 2008 guideline on what to expect it to cost.  Plus, when you get ready to sell your home, after doing everything to it to make it just perfect, what you can expect to re-coup.

Let’s begin with likely moderately priced additions to the
house.

Project Cost Resale Value ROI
Bathroom addition $43,884 $36,657 83.5%
Family Room addition $92,710 $78,647 84.8%
Master Bedroom addition $116,134 $101,224 87.2%
Wooden Deck addition $12,812 $13,836 108%

Now let’s look at a moderately priced remodels of the house.

Project Cost Resale Value ROI
Bathroom remodel $18,112 $17,500 96.6%
Home Office $29,892 $20,584 68.9%
Major Kitchen remodel $61,122 $59,056 96.6%
Minor Kitchen remodel $22,698 $23,494 103.5%
Replacement of Roof $21,360 $18,182 85.1%
Vinyl Windows $12,164 $11,978 98.5%
Wood Windows $12,120 $13,497 102.9%

But, what happens if you want to go First Class with your remodel?

The costs above are for additions or remodels that are done with medium prices appliances and fixtures which are perfectly fine for most of us.  If you’re living in a more upscale neighborhood, where doing only the best works, then prices are considerably higher.  The first are to give you an idea for additions to that future home you’re considering.

Project Cost Resale Value ROI
Bathroom addition $83,573 $70,254 84.1%
Trax Deck addition $16,623 $16,354 98.4%
Master Bedroom addition $248,404 $192,084 77.3%

Now, what if you only want to update the house because it’s such a great buy?

For an idea of what it might cost going whole hog, Full Monty or where money’s no object look at this.

Project Cost Resale Value ROI
Bathroom Remodel $56,822 $48,139 84.7%
Major Kitchen Remodel $117,254 $104,241 88.9%
Roof Replacement $38,414 $30,703 79.9%
Vinyl Windows replaced $15,743 $15,855 100.7%
Wood Windows $19,608 $20,270 103.4%

Here’s the surprise in comparing the moderate projects versus the high end projects, the ROI on the higher end isn’t always as good as it is on moderate.  Isn’t that interesting?  So if you want to do something to that house you’re considering buying, only do what you really want to do, and not what you think will give you the best return when you sell.  Your idea of the perfect kitchen, bathroom, office or deck, might not be the next buyer’s idea.

Moving? Know the value of your home …