A brand new bathroom will add about $23,000 to the resale value of your home. Photo: Los Angeles Times
As someone who's practically obsessed with my home, here's my wish: that every dollar I spend fixing it up will be returned to me when I sell it.
Wouldn't that be a great argument to have when my husband and I engage in remodeling wars? He would say: "That's too much to spend." And I would say: "So what? We'll get it all back when we sell the house."
Of course, that scenario is far from reality. Rarely will you get back 100% of a project's initial cost when you resell your house.
Case in point: If I spend $39,000 to add a new bathroom, I can expect it to increase the appraised value of my home by $23,000, which means I will recoup only 60% the cost when I sell my home.
How do I know this? I read
Remodeling Magazine's 22nd annual Cost vs. Value Report. Relying on input from real estate agents and other building professionals, the report rates the 33 most popular major home improvement projects based on cost vs. resale value -- basically, how much they'll each add to the dollar value of your house.
So why invest in these major improvements? In our current buyer's market, says the
National Association of Realtors, houses with well-done improvements tend to sell quicker than their shabbier neighbors.
Looking to remodel? A new attic bedroom will yield the highest return on investment. Photo: Janesdead, Flickr