April 16, 2011 in Investing In Real Estate
How Do You Know If You’re Getting a Good Bang for your Buck?
Did you ever wonder if you’re getting a good “bang for your buck” when you do home remodeling? I know I have. If you’ve ever watched the HGTV show “Bang for Your Buck”, you will quickly see that everyone has a different opinion about the actual value added after most any major remodel in a home.
Folks sometimes update a room in their home like the kitchen or bath to suit their personal tastes without really giving much thought to the return on your money spent. That’s OK so long as you understand that “pleasure” may be the most important return on your investment that you’re getting. But if you are putting money into a rehab project, then you may have a whole different opinion about how you want to spend those dollars.
I came across a website the other day that gives cost VS value reports for an assortment of home remodeling projects. What is really nice about this site is that it takes into consideration the geographic area you live in. As we all know, the costs for a major kitchen remodel can vary greatly depending on location.
Here are a few interesting statistics:
- In my area, a master suite addition could set you back $103,696. But you would likely only recoup $67, 696 or 65.2% of your investment if you sold your house.
- However if you finished an existing attic space into a bedroom the cost would be $49,346. You could expect to recoup $40,992 or 83.1% of your investment.
- Adding a wood deck is a great way to get a good bang for your buck. You could expect to spend about $10,624 according to the site, but you would get back $8,673. This is about 80.6% of the money you invested.
Do Some Research
Before you dive into your next project, you might want to spend a little time doing some research to determine what your cost VS value would be. You can check it out at the link below: