Home Renovation Values in 2020
Each year, Remodeling magazine releases a report comparing the average cost of 22 remodeling projects with the value those projects retained when it came time to sell. They compared data nationally and regionally across 101 city markets.
The closest city to us included in the report was Washington, D.C, so that's the data that we are examining. Keeping with the trend of previous years, it's all about curb appeal with exterior projects claiming 9 of the top 10 spots for renovations with the highest return. According to the Remodeling 2020 Cost vs. Value Report, the project with the highest return on investment was (drumroll please...) Manufactured Stone Veneer with an average project cost in D.C. of $9,604 and a resale value of $9,552 for a 99.5% recouped cost. When it comes to interior projects, the Remodeling 2020 Cost vs. Value Report 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.
Also similar to previous years, the Remodeling 2020 Cost vs. Value Report showed that the project with 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.
When you review the entire report you will see that when it comes to interior projects, midrange renovations tend to have a higher return on investment than upscale renovations. This is great news for a lot of sellers because a less expensive renovation may have a greater positive impact on the sale price.
It's important to keep in mind when reviewing the report that buyers' value opinions are going to vary greatly from neighborhood to neighborhood and property to property. Buyers looking for a starter townhouse in Leesburg might be priced out of a property with an Upscale Major Kitchen Remodel, while buyers looking for an estate in Great Falls will expect the kitchen to be top-notch.
If you're thinking about making some renovations and want to keep resale value in mind, let us know! We can help guide you towards choices that will get you the most bang for your buck for your specific home and community.
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© 2020 Hanley Wood Media Inc. Complete data from the Remodeling 2020 Cost vs. Value Report can be downloaded free at www.costvsvalue.com