Have you been thinking about remodeling and wondering whether or not it’s worth it? First you might want to do a cost-benefit analysis. This analysis is simply a compilation of the costs of a project compared to the benefits you will receive once the project is complete.
The costs of a project are mostly objective, it’s the cost of the material and labor required to complete a project. The benefits, however, are both objective; How much increase in value will my home see as a result of this remodel?, and subjective; How much will this remodel benefit me and my family in terms of convenience, enjoyment or comfort?
Only you can determine the subjective value of a remodeling project but the folks at Remodeling magazine have done a great analysis of the objective cost of a variety of projects for you. You can download your copy of the Denver report here, Cost vs Value Report, for other areas of the country go here, www.costvalue.com
Here are a couple examples:
A remodeling project like replacing the siding on your home with cement fiberboard siding may not provide you or your family a big increase in comfort, convenience or enjoyment BUT according to the Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com), it has a great return on investment. If you choose to replace your existing siding with high quality cement fiberboard siding you will spend $13,250 and increase the value of your home by $13,560 which is a 102.3% return on investment! So if your siding is in need of replacement this choice is easy.
Finishing your basement will likely provide you and your family a significant increase in enjoyment, convenience and comfort. According to the Cost vs Value Report a basement remodel will cost you $62,131 and will increase the value of your home by $49,082 which is a 79% return on investment (for every $1 spent you get $0.79 in return). If you’re planning on staying in your home for a while, need additional space to accommodate a growing family or want a more comfortable home, the decision to remodel the basement is likely a good one. If you’re planning on putting your home on the market in 6 months, you might want to reconsider.