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Remodels and Recouping Costs

If you’re thinking about doing a few home improvements, you may want to consider what will give you the best return on your investment down the road.

According to the Remodeling 2013 Cost vs. Value Report (*, you will recoup the most cost from a steel entry door replacement and a garage door replacement in the Indianapolis area. These two improvements may not be at the top of your list, but you’ll recover about 79.3% of the entry door cost and 68.7% of the garage door replacement cost. Entry door replacement even ranks as the number one project in the U.S. for a return on remodeling. Third runner up is a minor kitchen remodel. You’ll potentially earn around 66.1% of the amount you put into it (ex. paying around $18,433 with a resale value of $12,193).

So, what should you stay away from? In the Indianapolis area and in the nation, a home office remodel in the midrange ranks last in a list of 22 project types for resale value. It might be functional for you, but not your future buyer. You may also want to nix that sunroom addition, too – you could pay up to $71,000 for the addition and only get back roughly $31,000. If you’re in the upscale demographic, avoid a master suite addition (in this report, it would be adding a 32-by-20-foot master bedroom suite over a crawlspace). You would only earn back around 44.3% of what you paid. Many people also tend to think a bathroom remodel will be a great investment. However, the numbers tell a different story. In Indianapolis, a bathroom remodel is ranked 17 out of 22 midrange projects for recouping costs. You would only receive around 49.5% of your money back.

It’s your choice what home improvements you make, but if you think there’s a potential you’ll move in the future it’s worth considering what a prospective buyer will pay a higher price for.

* © 2013 Hanley Wood, LLC. Complete data from the Remodeling 2013 Cost vs. Value Report can be downloaded free at

Posted: 4/23/2013 with 0 comments

Categories: Homeownership, Investments, Planning

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