I came across this good article in Remodeling Online which looks at the cost recovery of remodeling projects.
The big takeaway is that most do not yield a positive ROI when you exclude the enhanced quality of life the owner/resident benefits from after the remodel is done and before the property is sold. An excerpt of the Top 3 ROI remodeling projects are below -- notice the ROI is less than 5% not including cost of capital and inconvenience factor. For the whole list of other remodel efforts, check it out here.
|Project||Job Cost||Value at sale||% Cost Recovered||2005 Rank||2004 Rank||2003 Rank|
|Siding Replacement - Upscale||$10,393||$10,771||103.6%||1||n/a||n/a|
|Bathroom Remodel - Mid-Range||$10,499||$10,727||102.2%||2||5||6|
|Minor Kitch. Remod - Mid-Range||$14,913||$14,691||98.5%||3||2||n/a|