There are many reasons to remodel your home: to perform repair and maintenance, to update the style, or to create better functionality. Regardless of your reason, adding value to your home is a consideration within the remodeling process. Balancing your needs and desires with your budget and return on investment can help you make wise design decisions.
Remodeling Magazine publishes a yearly report on the cost vs value of U.S. home remodeling projects segmented by region. According to the data, over the past year, the cost-value ratio for projects overall increased by almost 3% over 2011, which saw its lowest point since 2001. Recovered costs were up in all 35 home project categories, which include both replacement projects (window, doors, siding) and remodeling projects (kitchens, bath, additions).
Indianapolis is designated within the East North Central region, which saw gains in every category as well. Within midrange remodeling projects, wood deck additions had the greatest return, at 77.3%. Minor kitchen remodels brought back an average of 75.4%, attic bedrooms returned 72.9% and major kitchen remodels came in at 68.9%. The greatest return for upscale remodels was seen in major kitchen projects and composite deck additions, which both came in at 59.7%. Bathroom remodels and additions brought an ROI of 58.3% and 65% respectively.
The data shows that upscale remodeling projects tend to garner a lower return on investment. This may be due to the value the current homeowners place on higher-quality materials or designs that are not necessarily supported by the new homeowners. However, the value of your home, as well as your neighborhood, can drive design choices. Buyers looking in upscale neighborhoods are expecting higher-quality materials and features. Meeting their expectations will help your home compete for buyers in the long run.
A local, experienced interior designer is your best resource for figuring out how to balance design choices and eventual return. S/he should have industry and local market knowledge to guide you through good decision-making. It is important as a homeowner that you achieve what you are looking for in your remodeling project, and be able to add your personality to your space. An interior designer will be able to help you bring in personal elements while creating a look that will be universally attractive. Working with a design/build remodeler has the added benefit of matching design with construction knowledge. Understanding what it will cost to build your dream design goes a long way in figuring out the value of a home remodeling project.
Click here to learn more about the 2013 Cost vs Value Report, and to see how our region stacks up to the rest of the U.S. We would be happy to answer any questions you may have on remodeling within the Greater Indianapolis region. Just send us an email, or give us a call at 317-846-2600.