Home remodeling can be a great way to increase the value of your home and enjoy the benefits of a newly renovated space. According to a study by the National Association of Realtors and the National Remodeling Industry Association, homeowners can expect to recover around 59% of the cost of a complete kitchen renovation, and 50% of the cost of a new master suite. Bathroom additions are the most profitable, with an average return of 86.4%. Other projects such as attic bedrooms, family rooms, and glazed terraces can return between 70-80% of the money spent.
If you're not planning on selling your home anytime soon, you can still take advantage of the net worth of your home by requesting a refinance with cash out. This will allow you to enjoy expensive renovations such as a kitchen or bathroom remodel without having to worry about recovering the costs. The main reason to undertake any home remodeling project is for your own enjoyment. According to the HanleyWood Housing Continuity Study, more than 70% of buyers who purchased existing homes knew what they were going to remodel even before closing the deal.
When considering whether or not to undertake a home remodeling project, it's important to consider how much you'll recover from the costs and how long it will take to complete the renovation. It's also important to price your home accordingly if your remodeling project would cost more than it can on the sales side.