Remodeling our house

Author: Ashley

23 Jun

I’ve had remodeling on the brain lately. It’s one of those topics I try to not even think about because my mind tends to get away from me. It starts with me saying “You know what would be cool…” and before I know it I’m drawing up a budget and looking for financing. That’s what happened with the backyard. We had ideas, looked at pavers, made drawings of what we wanted it to look like, knowing full well that we couldn’t landscape the backyard for a quite a long time. Well, it’s landscaped. ooops.

It’s taking me twice as long to get ready in the morning because I’m dreaming of my remodeled bathroom, and that has me concerned. I even talked to a Realtor about my plans and their affect on our house value. SOMEBODY STOP ME!

Besides gutting our bathroom there are a couple of other things I would like to do first. I want to replace the rug downstairs with tile and upgrade the kitchen counters. For some reason I always had it in my head that you actually made money if you remodeled your house. For example, I thought if you spent $10,000 upgrading the kitchen you would increase the value of the house by like $11,000. But that’s not the case. While researching my awesome ideas for the bathroom I found this nifty site that gives the percentage back on different types of remodels. If you click around your city might be listed and you can get info for your specific region. For example, the average bathroom remodel for my area costs $14,955. The average amount recouped is $12,289, or 82.2%. So it only really costs $2,666, right? Well heck! Sign me up for that. For less than $3,000 I can have the bathroom of my dreams? How can I not do it?

Well, unfortunately that is only true if you sell the house right away. Otherwise you still owe the full $15,000. I mean, someone has to pay that loan. They don’t just hold it for you until you sell. But it is very odd to spend $15,000 and only have your net worth go down by $3,000. Not that it makes it a good idea, it’s still a loan no matter how you slice it.

According to the site I listed the average percentage recouped for a midrange remodel is about 70%. With the best remodels being adding a wood deck (85.4%) and a minor kitchen remodel (83%). The worst remodels are a home office remodel (57%) and a back up power generator (58%).

pic credit: Kaworu Koneru

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Filed under: Real Estate

4 Responses for "Remodeling our house"

Livingalmostlarge June 23rd, 2008 at 11:16 am 1
Remodeling isn’t about money. It’s about making the house better for you. Sure our gas fireplace won’t recoup the value of installing and using it $4k, BUT we’re saving money by not having our pipes burst in the winter. Our neighbors below love us and we have peace of mind at work and while sleeping.

There is much to be said about making where you live comfortable. And so I’ll get $0 back for our fireplace but it’s worth every penny.

Remodeling like buying furniture, car, anything that depreciates isn’t for anyone else. That’s just crazy. You’re better off giving me the buyer the $15k so I can pick to my taste. Instead do it because it brings value to your happiness and lifestyle.
Scott June 23rd, 2008 at 6:20 pm 2
My wife and I would love to redo our guest bathroom but have been putting it off for 5 years now. We probably would have done it sooner if we just paid someone to do it. It just needs a little updating and some new paint and should cost about $2500 if we do it ourselves. The same job would cost $10k if we have someone else do it.
Cynthia June 24th, 2008 at 2:00 pm 3
I was looking at that cost vs. value site and here are my thoughts.

By reading the description of the individual remodeling projects they are using as basis for the calculations and with a bit of research, and creativity, you can really bring down the cost of such projects.
Besides the DIY projects, you can shop around for alternative and recycled materials, finishings and fixtures and end up saving a lot even if you hire someone to do the job.

In other words, although the site gives you a good idea of overall cost of those specific projects, I believe you can substantially increase the value without that much cost and without doing a sloppy job.

In addition, there are other things to be considered that are not computed in those “value” calculations.
Water and energy savings for example.
Some remodeling projects even generate some savings in home owners insurance premiums.
666 » Remodeling our house June 25th, 2008 at 8:55 pm 4
[...] Remodeling our house …average bathroom remodel for my area costs $14,955. The average amount recouped is $12,289, or 82.2%. So it only really costs $2,666, right? [...]