So, you want to renovate, but you want to make sure to recoup some of that money when it comes time to sell?
The 2014 Cost. vs. Value report by Remodeling Magazine reveals that, nationally, renovations involving attics, backup power generators, basements and bathrooms deliver the biggest return on investment.
Of course, some of these projects aren’t exactly a fit for desert living (a hot attic bedroom isn’t exactly enticing). Here are a few that not only make sense but also come up as some of the publication’s best performing renovations when it comes time to sell your home in Phoenix.
Bathroom renovations are popular around the country. For Phoenix, the report found that a mid-range bathroom remodel, including a new tub, toilet and vanity, a new medicine cabinet with lighting and a tile floor and bath surround, will cost about $15,579 with a resale value of $11,104 — offering a 71.3 percent return on your investment.
A more upscale bathroom remodel comes in at a slightly lower return. The cost of expanding the footprint, relocating plumbing and using higher-end fixtures (like electric in-floor heating and frameless shower enclosures) is estimated at $50,581 by the magazine, and is said to retain 69.2 percent of those costs at resale.
In either case, it seems renovating an existing bathroom is a better bet than adding a new bathroom overall; the magazine reveals that an upscale bathroom addition only returns 66.9 percent return at resale, and that a more modest mid-range bathroom addition dips even lower, returning just 65.1 percent at resale.
Kitchen remodels are among the best performing projects nationally, according to the report. And that also holds true here in Phoenix. But there’s no need to go celebrity-chef style with your efforts – it’s the mid-range projects that return the most on your investment, the magazine finds.
The report projects $18,629 for a minor mid-range kitchen remodel, including the cost of refacing existing cabinets, replacing some appliances, touching up paint and replacing laminate countertops.
In Phoenix, these improvements can recoup about $15,146, or 81.3 percent, the magazine says. A more major – but still mid-range – kitchen remodel, which might include semi-custom cabinetry, all new appliances and new flooring, is estimated to cost $53,327 and still returns a respectable 78.5 percent.
Going high end with a kitchen renovation, however, doesn’t seem to offer such lucrative returns. An upscale kitchen remodel, with high-end fixtures and appliances, new cabinetry, tile backsplash, stone countertops, cork flooring and new lighting is estimated to cost $107,838 and return just $72,460 at resale, or just 67 percent, here in Phoenix.
Whatever you decide to do with your home renovation dollars, whether it’s embarking on an extreme home makeover or just a weekend warrior project, be sure you check codes and ordinances to ensure that you and (eventually) your new buyers stay safe for years to come.