Every couple of weeks I meet with a new homeowner that's interested in making a major change in their life and it typically takes the form of a new bathroom or kitchen. These are two areas where we all spend the majority of our time and are essential when it comes to resale later on (everyone LOVES a tastefully designed and visually stunning kitchen or bath).
In Alaska, a floor to ceiling completely renovated bathroom can range anywhere from 16,000.00 to 65,000.00 and a completely renovated kitchen can be anywhere from 20,000.00 to 70,000.00 and up. Naturally there are plenty of variables that account for the overall cost of your project such as finish grade materials and the quality and cost of; flooring, cabinets, countertops, backsplash, additional lighting (and the list goes on) but that's dipping into a conversation on project budgeting which we'll save for a different post.
This post is about ROI or Return on INVESTMENT!
Here are some figures for you to ponder on...
A midrange bathroom remodel average job cost is 21,635.00. The value at resale is 16,206.00. That's a 74.9% return on your investment!
An upscale bathroom remodel average job cost is 65,748.00. The value at resale is 46,148.00. That's a 70.2% return on your investment!
A minor midrange kitchen remodel average job cost is 23,695.00. The value at resale is 22,711.00. That's a 95.8% return on your investment!
A major midrange kitchen remodel average job cost is 69,723.00. The value at resale is 52,377.00. That's a 75.1% return on your investment!
Am I an investor or financial advisor in the traditional sense? Emphatically NO. If I gave you advice on how to manage your portfolio or which stocks to buy and which ones to sell it would essentially equate to a gypsy searching for answers in tea leaves or being a contestant on Wheel of Fortune except the entire wheel just says "Bankrupt" and you've decided to spin it anyways.
Do I know how and where to reinvest in your home to make sure that you maximize the return on your investment? Unequivocally YES. If you're planning on reinvesting in your home I want to sit down and talk with you about every aspect to make sure that you have every tool and resource available to make an informed decision. I want to talk about the overall concept and design, cost, and how to improve the look and function of your space to ensure that you're getting exactly what you're looking for now and that you'll continue to benefit from your investment years down the road as well.
As a company, the greatest ROI for us is a happy homeowner. We need to make sure that the Lionheart brand is not only associated with exceptional quality and high intention but also sound advice. On a few occasions I've actually talked homeowners out of doing a project because I knew that it wasn't in their best interest and didn't have the ROI to justify the cost. As professionals in the remodel industry we need to be ready to evaluate our clients needs, educate them on the renovation process and to protect their financial interests.
And learning about the potential ROI is a big factor when considering a home improvement project.
Stats given are based on the most recent "Cost vs Value" national averages. The regional averages referenced here are based on Anchorage AK which falls under the "Pacific" catagory.