If you're remodeling to increase your home's resale value, you'll want to think in terms of your return on investment (ROI). In other words, figure out how much your remodeling project will cost and how much of those costs you'll recoup when you sell your house.
It's not an exact science, and there are no set guidelines for the payback related to different remodeling projects. Typically kitchen and bath remodels offer good returns but a lot will depend on your local housing market and current trends and tastes. However, real estate agents and remodeling contractors in your area may be able to give you a good idea of what to expect. You can also search the Internet for various calculators that can help you determine typical ROI for various remodeling projects.
Look at Averages
To get an idea of what payback averages are, consult the annual Cost vs. Value Report conducted by the National Association of Realtors and Remodeling magazine. The report, based on feedback from real estate agents and appraisers in 60 residential markets, estimates the cost of an average home improvement project and compares it to the value it would get back if the home were sold a year later.
Based on existing home sales in the southern United States, the 2005 report offers these statistics:
| Remodel Type |
Description |
Average Cost |
Resale Value |
Percent Recouped |
| Minor Kitchen Remodel |
Replace cabinet fronts, countertops, new energy-efficient appliances, new sink and faucet and vinyl flooring. |
$13,998 |
$13,498 |
96.4% |
| Major Kitchen Remodel |
Replace cabinets and cabinet boxes, new professional grade appliances, tile flooring, solid surface countertops. |
$41,133 |
$36,329 |
88.3% |
| Minor Bathroom Remodel |
Replace 25-year old or older fixtures, tub, flooring, vanity and new paint. |
$9,293 |
$9,596 |
103.3% |
| Major Bathroom Remodel |
Add square footage, large closet, all new cabinets, tile flooring, solid surface countertops, fixtures, large tub and separate shower. |
$23,428 |
$23,087 |
98.5% |
The Value of Energy Efficiency
It’s more difficult to estimate the payback for remodeling projects that increase your home’s energy efficiency. However, Web sites like that of Energy Star can give you an idea of what kind of benefits to expect and potential short- and long-term savings.
Of course, if you're remodeling because you need the space or just for the fun of it, the end results will make any project worthwhile.
We Can Do It All For You!
PSNC Energy's experts can handle it all for you, from helping you find just the right appliances for your newly remodeled kitchen or bath to installing them properly and safely.
Click here to see examples of the products available from PSNC Energy. We can also install and repair appliances, even if you didn't buy them from us.
For more information or to schedule appliance repair service, call toll-free
1-866-546-5369 today. Free in-home estimates are available for installations.
The preceding content is provided for informational purposes only. PSNC Energy does not provide specific remodeling services or endorse any contractors or builders.
PSNC Energy appliance sales, installation, maintenance, and repair are not a part of the regulated services offered by PSNC Energy and are not in any way sanctioned by the North Carolina Utilities Commission. There is no advantage to customers of PSNC Energy if they buy these products or services from PSNC Energy. A customer does not have to buy such products or services in order to continue to receive the same safe and reliable natural gas service from PSNC Energy.
