Articles » Remodeling ROI: Is it worth it in Arizona?

Remodeling ROI:  Is it worth it in Arizona?

With the real estate market favoring the buyer and more and more inventory to choose from, more sellers are considering remodeling to make their houses stand out from the rest and get top dollar.  The question is:  Is it worth it?

An annual report published by the National Association of Realtors, surveys contractors & remodelers from across the country and compiles the figures.  A set of criteria was established to determine whether the job was a minor or a major remodel, costs of construction recorded and finally the selling price of the home.  Together these figures give a picture of an average percentage you can expect to get back when you sell your home in this market. 

Whether a minor remodel or a major one, information is presented to give you the average cost of both versus “what you can expect to recoup” when you go to sell.  Furthermore, the report is also broken down into different regions of the United States allowing you to make a more informed decision about whether or not to invest in a remodel.

Here are a few facts taken from the 2006 Cost vs. Value report for the Mountain States (AZ, CO, ID, MT, NM, UT, and WY):

Kitchen Remodel         Job Cost          Resale Value     % Cost Recouped **

Minor                               $17,487               $15,164                        86.7%

Major                               $52,948               $42,760                        80.8%

Bathroom Remodel

Minor                                $12,335              $10,674                        86.5%

Bathroom Addition         $27,890              $20,449                        73.3%  

Granted, these figures are averages and will depend on your neighborhood and the condition and layout of the rest of the home, however, it gives you a ballpark of what you can expect.  As you can see from the above numbers, the recoup cost of remodeling a kitchen or bath, even a minor one, is impressive and worth considering.

**Taken from the Remodeling Cost vs. Value Report 2006.  For more information about other remodeling facts in the report: Remodeling Report

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