Remodeling magazine recently released its 2020 Cost vs Value Report comparing the average cost of 22 remodeling projects with the value those projects retained when it came time to sell. The report compares data nationally and regionally across 101 city markets.
In looking at the results from Washington, D.C, the closet market to Northern Virginia, we see similar trends from the previous year. Curb appeal really does have a major impact on the return you’ll see at resale, with exterior projects capturing 9 of the top 10 spots for renovations with the highest return on investment (ROI).
When it comes to interior projects, the Washington, D.C. Remodeling 2020 Cost vs. Value deemed a Midrange Minor Kitchen Remodel to be the best return on investment with an average project cost in D.C. of $23,899 and a resale value of $19,199 for an 80.3% recouped cost. The lowest return on investment was an Upscale Master Suite Addition with an average project cost in D.C. of $286,777 and a resale value of $140,400 for a 49% recouped cost. Overall, when it comes to interior projects, midrange renovations tend to have a higher ROI than upscale renovations.
It’s important to keep in mind when reviewing the report that buyers’ value opinions are going to vary significantly from neighborhood to neighborhood and property to property. All remodeling projects depreciate in value and almost no projects return 100-percent on their investment. Some of the most popular home renovation projects are the ones with the lowest percentage of cost recouped such as master suite additions, family room additions and bathroom additions.
If you’re thinking about renovating and want to keep resale value in mind, we can help! At Thomas Custom Builders, we guarantee you’ll get the exact results you’re looking for, along with instant equity in your newly renovated home.