MarketWatch reporter Daniel Goldstein investigates the latest Cost. vs. Value report, conducted by BUILDER sister publication Remodeling Magazine, to see how much money you should really be investing into your renovations. According to the report, the average cost and average return for the 30 projects researched resulted in an average of just over 64% of a project’s investment dollars getting recouped if the home is sold within a year.
So which home renovations will actually be worthwhile? Turns out, you don’t need to spend a lot to get a lot back. Goldstein writes:
For example, in 2016, the best remodeling project on a cost/value basis will be adding fiberglass insulation into an attic. On average, the magazine said that the project would cost an average $1,268 nationwide but would increase a home’s retail value by an average of $1,482, or a recoupment cost-to-value ratio of nearly 117% , meaning when you sold your home, you’d recover all your costs and make a double digit percentage profit as well.