Rate of Return on Your Home Remodel Investment
When deciding whether to remodel or not, our clients often question the rate of return on their home remodeling investment. What we mainly focus on is the kitchen and master bath. These spaces are known factors as to what helps to “sell” a home. Another space that has had a real uptick in recent years is the outdoor living area. Outdoor spaces are becoming more and more sought after spaces when shopping in the market. Investments into these spaces are designed to make a profit, but do all investments make sense? Learn more below!
Kitchen Return of Investment
Kitchen remodels are the majority of what we do here at KDC. Being that it’s the heart of the home, the functionality and design play a BIG role in how quickly your home can sell, and most importantly, how much it sells for. Our personal experience with kitchen remodels and customers selling within 5 years of doing the remodel dictates they get back more than what their original investment was. On average (here in Dallas, TX) you’ll have an 80% immediate return, and 100% return after 5 years (and less than 10 years). Take note that the value of the house also plays a part in the return on investment. For example, a $1m house that has a $150k kitchen will most likely recoup the entire value, however, a $200k house that does a $70k kitchen may only recoup 80%.
Master Bath Return of Investment
The master bathroom is the second most important home remodel investment to help sell your home. The feeling of sanctuary, cleanliness, beautiful design are just some of the characteristics buyers love to see in a masterbath. Here in Dallas, TX, we see an average of 75% immediate return, and a 95% return after 5 years, and less than 10 years. Again, the value of the home does play a factor here as well.
Outdoor Living Remodel Investment
The outdoor living area is a surprising area that really pays off when investing in it. Outdoor living areas, especially here in Dallas, are often utilized year-round and are a huge selling factor for a home. In the past, we saw a 60% return at best, but today we see 85% in immediate return and 100% return after 5 years! People are more and more interested in being outside in nature all while having a beautiful space to be in. This trend is related to health and wellness and often is the general desire for one partner to be able to have their own space to cook.
Want to check out some of our other blogs? Then check out Top 5 Favorite Items a Hobby Chef Needs in Their Kitchen and Cabinet Hardware Options in Design!