7 Additions to the Home That Are Most Cost-Effective
There are plenty who’d disagree with the classic quote “it takes money to make money.” But when it comes to improving your home, you’d be hard-pressed to add value to your home without spending some cash.
Below is a breakdown of the most popular home additions along with costs and payoff. It might surprise you that if you want to recover money spent, you’re better off going for the smaller additions. Note: Numbers are based on a Cost Value Report by Remodeling Magazine:
Average Cost: $100,000
Additional value to home: $64,000
As you can see, making improving your master bedroom, complete with full bath and walk-in closet, is only worth it if you actually want the extra space. Otherwise, you’re spending 100 grand and are only increasing the value of your home by a bit more than half of what the average homeowner spends. In comparison, turning your attic into a bedroom will cost you less than $50K but raise your resale value by about 75%.
New Steel Entry-Door
Average Cost: $1,000
Additional value to home: $850
There’s no better addition you can make when your goals is to get the most return on your investment. After all, curb appeal is a key factor when considering a home’s attractiveness and value.
Second Story (family room, bedroom, bathroom)
Average Cost: $150,000
Additional value to home: $97,500
A two-story addition is one of the last cost-effective choices to make if your goal is to spend less to earn more. While your family will no doubt enjoy the new space, you’ll end up spending $53,000 more than what you’ll be adding to your home’s value.
New Vinyl Window
Average cost: $10,000
Additional value to home: $710
Windows are also an excellent choice if you want to add curb appeal to your home while recouping most of your money. If your windows have seen better days, revamp them with insulated vinyl that look better and improve insulation.
Complete Kitchen Remodeling
Average cost: $54,000
Additional value to home: $37,000
To be honest, you’re more likely to spend much more than $50K on a kitchen remodel since they’re one of the priciest additions out there. Things like new appliances and granite countertops don’t come cheap. When you add things features like a tile backsplash or
custom cabinets and you can easily spend $100K just to raise your value by around $40K.
Wood Deck Additional
Average cost: $9,000
Additional value to home: $7,000
People love having an outdoor space they can enjoy. Adding a wood deck or redoing your old one is a cost-effective way of increasing your home’s resale value.
Average cost: $38,000
Additional value to home: $20,000
The average American recovered more than half the cost after adding a midrange bathroom to their home. If you have a large closet or other space without good use, an extra bathroom can be a wise investment.