This bed-and-bath retreat for the masters of the house has a national median cost of $112,500, according to the “2015 Remodeling Impact Report” from the NATIONAL ASSOCIATION OF REALTORS®. Although you’ll luxuriate in your new private space, you’ll only get back about 53% of your investment when you sell your home — one of the lowest returns in the “Report.”
Nevertheless, most homeowners in the same survey gave their project a big thumbs-up with a Joy Score of 9.7 — a rating based on those who said they were happy or satisfied with their project, with 10 being the highest rating and 1 the lowest.
Keep Up (or Down) with the Joneses
Payback on a master suite addition depends more on how it compares with other houses on the block. If your neighborhood is filled with empty nesters with two-bedroom houses, you probably won’t recoup your investment in a luxury master suite. But if master suites additions are common in your area, you’ll recoup more.
Transform Existing Space
If you add a master suite onto your first floor, you’ll spend a chunk of the budget on site excavation and foundation pouring. If you can take advantage of existing space — such as building over a garage or converting an unfinished attic or basement — you can save between 20% and 60% on construction, and increase your return.
But turning a profit shouldn’t be your motivation for adding a master suite, or for doing any large home improvement. Do the work because it improves your quality of life, and only if you plan to stay put for at least three to five years.
20-foot-by-20-foot Bedroom Suite:
- National Median Project Cost: $112,500
- Cost Recovered: $60,000
- Percentage Recovered: 53%
- Joy Score: 9.7