The remodeling industry can be a tricky beast when it comes to comparing the cost vs. value associated with your remodeling projects. Luckily the remodeling industry comes out with standards that compares average cost for 29 popular remodeling projects with the value those projects retain at resale in 99 U.S. markets.
When reviewing the trends from the report the author states, “The most expensive projects—the upscale bathroom remodel, upscale master suite, two-story addition, grand entrance, and family room—saw the biggest year-over-year percentage increases in value, rising between 5.6% and 7.4%. All those increases outpaced the rise in cost to accomplish the projects, and suggest that real estate pros are rating such home improvements more highly than they did half a decade ago. Why? Because the real estate market continues to recover.”
Review the industry norms in the Denver area below:
- MINOR KITCHEN REMODEL
In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new shaker-style wood panels and drawer fronts, including new hardware. Replace cooktop/oven range and slide-in refrigerator with new energy-efficient models. Replace laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.
- Job cost – $20,576
- Resale Value – $18,076
- Cost Recouped – 87.8%
- MAJOR KITCHEN REMODEL
Update outmoded 200-square-foot kitchen with 30 linear feet of top-of-the-line custom white cabinets with built-in sliding shelves and other interior accessories. Include stone countertops with imported ceramic- or glass-tile backsplash; built-in refrigerator, commercial grade cooktop and vent hood, wall oven, and built-in microwave unit. Install high-end undermount sink with designer faucets and water filtration system. Add new general and task lighting, including low-voltage undercabinet lights. Install tile or similar flooring that looks like wood.
- Job Cost – Between $61,636 and $122,772
- Resale Value – Between $37,308 and $75,162
- Cost Recouped – Between 60.5% and 61.2%
- BATHROOM REMODEL
Expand an existing 35-square-foot bathroom to 100 square feet within existing house footprint. Relocate all fixtures. Include 42-by-42-inch neo-angle shower with ceramic tile walls with accent strip, recessed shower caddy, body-spray fixtures, and frameless glass enclosure. Include a freestanding soaker tub with high-end faucets; stone countertop with two sinks; two mirrored medicine cabinets with lighting; a compartmentalized commode area with one-piece toilet; and a humidistat-controlled exhaust fan. Use all color fixtures. Use larger matching ceramic tiles on the floor, laid on the diagonal with ceramic tile base molding. Add general and spot lighting including waterproof shower fixture. Cabinetry shall include a custom drawer base and wall cabinets for a built-in look. Extend HVAC system, and include electric in-floor heating
- Job Cost – $59,906
- Resale Value – $31,961
- Cost Recouped – 53.4%