Every year, people renovate their homes, both here in the Pembroke area and across the nation. There’s consistently interest in which type of remodels truly add value to the home. While everyone agrees that anything that is broken, from a non-functioning bathroom to a leaky roof, needs to be fixed right away, figuring out the other choices can be tricky. Remodeling magazine tracks the payback rates of many popular home renovations by comparing a job’s cost and the impact that job has on the home’s resale value; they release these numbers annually.
This year, once again, basement renovations appear near the top of the list of the renovations with the best payback rates. The basement renovation used to calculate the payback rate included a 20-by-30-foot entertaining area with wet bar, a 5-by-8-foot full bathroom with vinyl floors and a two-piece fiberglass shower unit and a 24-foot partition wall to enclose the mechanical area. The cost for that job was a little more than $81,000, and the positive impact on the home’s selling price was nearly $51,000, resulting in a payback rate of 62.8%.
That’s a better rate of return than you’ll get from a major kitchen remodel, two-story addition, or even roofing replacement! From our experience doing basement renovations in Pembroke, we know that most homeowners have no immediate plans to sell their homes: they’re upgrading the basement to provide more living space, room for a home business, or for other immediate needs. But it’s good to know that in the long term, a basement renovation can have a significant positive impact on the value of your home.