Renovations With the Best Return on Investment

Category Remodeling
Deciding which renovations to make before selling your home can be confusing. This is a page about renovations with the best return on investment.


Share on ThriftyFunThis page contains the following solutions. Have something to add? Please share your solution!

Kelly Ann Butterbaugh
March 12, 2010

Real estate sales might not be the most popular form of revenue this year, but it does feel good to know that some renovation costs are recovered during the resale of a home. Historically, the all-time slowest years for relocating have been 1948 and 2009, not a very surprising fact. These were the years that people chose to stay put. In a poor economy people are more apt to renovate than relocate, but when the economy gains strength and homes go on the market, the owners may begin to wonder, "If I sink the money into renovations, am I really going to get that money back in a higher resale? Really?" According to Remodeling magazine, you might.


The Kitchen

Kitchen remodels are very expensive, no matter how many corners are cut. After investing $10,000 in a kitchen remodeling project, one would expect to stay in the home for five years to recover some of the cost invested into the remodel. This would bring a yearly cost of the renovation to $2,000.

The numbers say that a kitchen remodel that costs $21,411 can expect a return of $16,765 on the resale. If the remodel is done only for the resale, it's better off undone since the return is only 78%. However, if the original kitchen is suffering from disrepair or severe cosmetic problems it may detract from the sale of the home. Add this new attraction to the return percentage and it might be worth it.

The Bathroom

If the investment in a kitchen remodel is too high, homeowners have created a trend of turning to the bathroom to remodel. Kitchen and bathrooms are the most popular remodeling projects in recent years. A major bathroom remodel can expect a 71% return at best. In 2005 some remodels received 101% of the investment back upon resale. With the economy falling, the percentage has also fallen.


Minor bathroom renovations offer nice returns as well. Investing $2,000 in new tile, especially if the original tile is grossly outdated or damaged, could still earn a full return upon resale. A simple regrouting also brings about worthwhile returns.

Remember that on average homes with new kitchens and bathrooms sell quicker. The return percentage might rise when less carrying costs are factored into the sale.


Additions are incredible headaches if a resale return is the goal; however, they are stable investments to a home. For instance, an added public living space on a home can expect to return 65% upon resale. A master suite addition, the type so often seen on the television shows that follow the home "flippers," will also return 65%.

An easier addition might be a deck or patio. By adding a treated wooden deck to the home it will receive 81% of the investment in additional closing prices. Clearly, this is the better investment-less headache, less permits, and less loss.


More Info

Values and returns depend upon location, and different parts of the country can see lesser values or greater values in resale. A strong resource for renovation return values can be found at where an updated study of the values based on geographical region can be found.

Comment Pin it! Was this helpful? Yes


Read More Comments

In This Page
Home and Garden Home Improvement RemodelingMarch 25, 2013
Back to School Ideas!
Summer Ideas!
Coronavirus Tips
Pest Control
Ask a Question
Share a Post
Better LivingBudget & FinanceBusiness and LegalComputersConsumer AdviceCoronavirusCraftsEducationEntertainmentFood and RecipesHealth & BeautyHolidays and PartiesHome and GardenMake Your OwnOrganizingParentingPetsPhotosTravel and RecreationWeddings
Published by ThriftyFun.
Desktop Page | View Mobile
Disclaimer | Privacy Policy | Contact Us
Generated 2020-08-04 18:29:44 in 2 secs. ⛅️️
© 1997-2020 by Cumuli, Inc. All Rights Reserved.

Add to PageAsk a Question