5 Home Renovations With the Worst Payoff – Money Talks News

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Home renovations can be a real chore not to mention expensive. If its a change that will improve a home you plan to stay in for a long time, go ahead and take on the challenge.

But sometimes, homeowners can be fooled into thinking an update will greatly improve their homes resale value. And thats not always the case.

Remodeling magazines 2022 Cost vs. Value Report looks at how well 22 remodeling projects retain their value at resale in 150 U.S. markets. In some cases, youll barely recoup half the renovation cost when it comes time to sell.

The following are the home renovations with the absolute worst payoff, starting with the project in the No. 5 spot.

National average cost: $175,473

Average cost recouped: 53.4%

The study doesnt just look at remodels, but at additions as well, meaning adding a completely new section to a house. The addition of a midrange master suite can cost more than $175,000 and recoups just over half that when the time comes to sell. But before you sell, youd be enjoying a pretty luxe new bedroom. The Remodeling magazine estimate assumes youve added a walk-in closet, dressing area and bathroom with double-bowl vanity, freestanding soaker tub and a separate ceramic tile shower.

National average cost: $158,015

Average cost recouped: 52.5%

If you love to cook or entertain in your kitchen, you may want to splurge on an upscale remodel but note that it will cost more than $158,000. While you might not be doing it for resale value, youll certainly enjoy the perks, which include high-end appliances, custom cabinets, stone countertops and new lighting.

National average cost: $63,986

Average cost recouped: 51.8%

One more bathroom may not recoup its costs entirely, but youll obviously find it helpful, especially if you have a large family or plenty of visitors. A midrange bathroom addition includes adding a 6-by-8-foot space much smaller than an upscale version, but more practical and less pricey.

National average cost: $114,773

Average cost recouped: 51.5%

If you can spend more than $100,000 adding a bathroom, youre certainly living well, and maybe you wont mind that youll only recoup about 50% of what you put into it. But you may never want to leave this new 100-square-foot bathroom, which includes a shower, soaker tub, two medicine cabinets, stone countertop with two sinks, heated floors and more.

National average cost: $356,945

Average cost recouped: 46.3%

Drum roll, please the home renovation with the absolute worst payoff, according to the report, is an upscale master suite addition. But to be fair, this is a monster project, including a large sleeping area, master bath, custom bookcases, high-end gas fireplace, walk-in closet, hospitality counter with bar sink, fridge and microwave, soundproofing and in-floor heating. Were betting those who have more than $350,000 to spend on a master suite like this arent going to need to recoup a lot when they go to sell.

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5 Home Renovations With the Worst Payoff - Money Talks News