  |
Which Improvements Pay Back?
All improvements are not created equal.
Deciding whether a home improvement makes financial sense isn’t always obvious. Most are made for enjoyment or necessity. If you’re considering improvements, ask yourself why. Maybe it’s something that cannot wait, like a new roof, or a growing family needing extra space. Just because you’re putting money into the home doesn’t mean you’ll get it back.
When it comes time to sell, some improvements have higher rates of return than others. For example, one of the most popular home improvement projects is finishing a basement. Survey’s show, however, that having one usually pays back less than 20 percent of the total cost. Here are some estimates on how improvements can increase your home’s value.
Project |
Cost |
Average Payback |
Adding a new heating or air conditioning |
$2,000 to $4,500 |
100% Heating; 75% A/C |
Minor kitchen remodeling |
$2,000 to $8,500 |
94% to 102% |
Major kitchen remodeling |
$9,000 to $25,000 |
90% |
Add bathroom |
$5,000 to $12,000 |
92% |
Add family room |
$30,000 |
86% |
Remodel bathroom |
$8,500 |
77% |
Adding a fireplace |
$1,500 to $3,000 |
75% |
Building a deck |
$6,000 |
73% |
Remodeling a home office |
$8,000 |
69% |
Replacing windows |
$6,000 |
68% to 74% |
Building a pool |
$10,000 and up |
44% |
Installing or upgrading landscaping |
$1,500 to $15,000 |
30% to 60% |
Finishing a basement |
$3,000 to $7,000 |
15% |
*Source: MSN House and Home
Value can vary.
Payback value greatly depends on the real estate market. Expect less payback in a slower market. Neighborhoods can vary, too. To get the most payback benefit, don’t overdo it. A modest neighborhood home overdone with lavish, upscale improvements may not yield as well as an area with above-average home values.
Fax: 419-537-9370
Email Jody
Contact Jody
