Having completed a number of home remodeling projects in Central Florida, a common question that we hear from clients is which home improvements yield the highest return on investment. While the answer to this question can vary, another question worth exploring is which home remodeling projects yield the worst return.
While no building contractor can guarantee a rate of return on a home remodeling project, here are 5 improvements that typically yield the lowest returns on investment:
1. Master Suite Addition
We've used our blog to touch on the concept of aging in place, and some homeowners that are choosing to stay in their existing homes through retirement are adding a master suite addition on the main level.
2. Closet Renovation
There's no question that a spacious walk-in closet is a desirable feature that homeowners want. However, considering that $3,500 is the average cost for just a reach-in closet remodel, spending the money to customize closet space probably won't drive up the market value of your home.
3. Wood-Frame Windows
While it can be a smart decision to upgrade to energy efficient windows, it's important to understand the expense associated with them. It's not unrealistic to budget upwards of $25,000 for windows, and opting for wood-frame windows can drive the price up even further. While window upgrades can save you money on your energy bill, splurging for wood-frame windows should be done for aesthetic reasons rather than the return on investment.
4. Bathroom Addition
While you always hear that kitchens and bathrooms sell a home, adding a bathroom to your home yields one of the lowest returns. According to a recent study put together by Realtor.com, the average recouped cost from adding a bathroom is 56.2 percent, making this a home remodeling project that yields one of the lowest returns on investment.
5. Highly Specialized Spaces
Not every prospective buyer is going to share your enthusiasm for a wine cellar, indoor playground, or any other highly specialized renovation to your home. If you're not planning to stay in your home for the long haul, be careful about creating these highly specialized spaces in your home.
Remodeling your home is personal decision. Even if the project doesn't yield a good return on investment, you don't have to view it has a waste of money.
To talk to a building contractor more about which home remodeling projects yield the best return on investment, please contact us at Empire Custom Builders.