Top 10 home Improvements that DON'T pay off.....

3 Replies

According to RemodelingMagazine,

1. Sunroom addition
ROI: 48.5 percent
Cost: $75,726
Resale value: $36,704

2. Home office remodel
ROI: 48.7 percent
Cost: $29,066
Resale value: $14,155

3. Upscale master suite addition
ROI: 53.7 percent
Cost: $236,363
Resale value: $126,860

4. Upscale garage addition
ROI: 54.7 percent
Cost: $85,592
Resale value: $46,791

5. Midrange bathroom addition
ROI: 57.8 percent
Cost: $39,578
Resale value: $22,875

6. Upscale bathroom addition
ROI: 58.6 percent
Cost: $76,429
Resale value: $44,750

7. New upscale composite deck
ROI: 58.9 percent
Cost: $36,385
Resale value: $21,437
 

8. Upscale major kitchen remodel
ROI: 59 percent
Cost: $113,097
Resale value: $66,747

9. Upscale bathroom remodel
ROI: 59.8 percent
Cost: $54,115
Resale value: $32,385

10. Backup generator

ROI: 59.9 percent
Cost: $12,135
Resale value: $7,263

All their costs seem way high to me!

Their costs are very high.  But so are the amounts they claim are added to resale value.

I basically don't dispute their general contention here, that these are renovations that won't pay off.  The key is the word 'upscale', which I read as 'custom'.  And a custom renovation to your particular tastes is almost never going to pay off on resale.

Nice but boring, nice but boring....

@David Krulac

Especially if you're focused on cash flow... you need to put yourself in the shoes of the tenant. How much more are you willing to pay in rent for these things? As a tenant I've always targeted location and price... condition is less of an issue as long as everything works as expected.

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