Remodeling Your Home: Cost Versus Value Added

Said differently, “When will the cost of my remodel be recovered in the value of my home?” This is a great question!  If you are looking strictly at resale value, you will more than likely not recover the cost of a major remodeling project within the first few years of its completion. Four to five years is a much more realistic time frame to allow the housing market to catch up with the cost of your upgrade.  Experts have been tracking this information for some time in a number of ways. In this blog series, I will explore this question and its components and do my best to shed some light and provide resources as to how homeowners might formulate an answer to this key part of their remodeling equation.

First, let’s unpack this a bit by asking a few other questions:

What types of remodels typically add the most value to your home? According to Houzz contributor Matt Clawson, the top five remodels in terms of cost vs. value are:

-Added living space (additions), provided the square footage added is significant enough to really influence the resale value of your home.
-Curb Appeal Investments
-Master Suites
-Adding Bathrooms

What is happening in your immediate neighborhood? Are home values increasing, or is the neighborhood on the decline? In a nutshell, it is generally more favorable to undertake a major remodel in neighborhoods where home values are rising.

What is the timeline? If you are putting the house on the market in the next year, you will have a very different answer than you would if a potential sale would occur after five years have passed.

What is the staying power of your remodel, and will it fit your immediate and long term needs? Will it bring you added joy? Will it create more harmony in your life?

Please give us a call at 612-827-3800 or send us an email at if you have any questions or if you would like to discuss an upcoming project in terms of cost vs. value.

By Susan Denk
Owner and General Manager
White Crane Design:Build


According to the Remodeling 2016 Cost vs. Value Report, the average cost and average return at resale for the 27 projects in this year’s report resulted in an average of 64.4% of a project’s investment dollars getting recouped if the home is sold within a year. That’s up from 62% in the 2015 report and the second-highest return in the past eight years.