Renovations: Cost vs. Value

If you’re updating your home with the aim of adding to its value, tread carefully. Some improvements boost value more than others, and in most cases, a project costs more than it adds in value.

According to Remodeling magazine’s 2014 Cost vs. Value report, the average portion of cost recouped is 66.1 percent. Of course, what buyers will think of—and might pay for—an upgrade is less of a hurdle if you plan to enjoy your fancy new kitchen or master bath for years to come.

How much you can expect to spend varies not just by project, but also where you live. Location will have an impact on materials, labor costs and trends.

Here are just a few renovation projects and their rate of return:

           Job Cost                      Resale Value                       Cost Recouped

Entry door replacement (steel) $1,365 $1,152 84.40%
Minor kitchen remodel $19,693 $15,303 77.70%
Window replacement (vinyl) $14,875 $11,578 77.80%
Major kitchen remodel $58,865 $40,523 68.80%
Bathroom remodel $17,020 $11,256 66.10%
Roofing replacement $20,644 $14,214 68.80%
Backup power generator $12,860 $6,940 54.00%
Garage Door Replacement $1,749 $1,345 76.90%
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