Cost of Home Renovations in Miami, FL: Should You Do It?
When most people think of renovating their home, all they can see are dollar signs. And not the kind on the plus side of things. Still, despite the upfront cost of home renovations in Miami, Florida, the return on investment (ROI) can be well worth the initial price tag as long as you're careful about where you invest your money.
Average amount spent renovating a home in Miami
Realtor.com breaks down the general costs of a renovation and what you can expect in low, medium, and high-end renovation projects. On the low end, ranging from $25,000 to $40,000, this price range typically encompasses interior and exterior painting, new landscaping, and small repairs like refinished cabinets and fixtures. Meanwhile, on the high end at around $76,000, you would expect to take care of foundation issues, sewer issues, and roof problems along with additional home upgrades.
On the other hand, Manta's data shows that the average cost of home renovations in Miami, Florida hovers around $39,600, with the maximum cost coming in around $70,000. This indicates that most projects in Miami, Florida are mid-range projects that often include a total kitchen renovation and minor bathroom upgrade.
Average return on investment
Manta's data encompasses costs that include labor, materials, project costs, and cleanup fees. Still, the return on investment can be quite strong: Realtor.com shows that the typical kitchen remodel can give homeowners an 83.1 percent return on investment. There's a reason that 80 percent of homeowners place kitchen remodels among the top three wish-list items on their renovation to-do list. But kitchens aren't the only place to get a great return. A bathroom renovation in Miami can cost nearly $10,000 alone, but they can return as much as 65.7 percent ROI.
Avoiding a loss when renovating
In a city where the average home value sits at just over $340,000 and the median listing price is $479,500, your home has to compete in a competitive market in order to sell. Data shows that hot real estate markets like Miami tend to have professionals who put higher valuations on the ROI of a project than in other markets. This means that not all home renovation projects will add value to your home. Some, in fact, will end up costing you. Some upscale renovations like a master suite addition or backyard patio don't have a great cost to value ratio.
Still, a home renovation can do a lot for a home that might be on the edge of breaking a higher price point on the open market. This is especially true in coastal neighborhoods near Dodge Island and Virginia Key, where properties are expected to be up to date before a realtor will place it on the market. But renovating your home years before you sell can lead to even greater ROI. Not only do you get to enjoy the updates, but the next owner will, too. And you'll be the one to profit. After all, it may not be the best idea to be in the hole two months before you sell with no idea how much you can sell the house for. The real thing to watch out for, though, is keeping costs down so you don't end up spending more than you budgeted.
What ends up costing you more on your home renovation is changing your mind after work has already started, surprise structural problems, and making sure your home is "up to code." To make sure these added expenses don't come up on your home renovation project, make sure you hire a reliable, licensed contractor to do the work and look closely into health and safety standards before starting the project. Still, the best way to make sure you get the most return on your project is to focus on the renovations that are most worth your money and save up for unexpected surprises.
Should you renovate your Miami home?
When you're staring down a pricey home renovation project, the investment may not seem certain. But, for the most part, homeowners see a great return on investment when they renovate their homes. In an expensive city and competitive market like Miami, it makes sense to do everything you can to make sure your home stands out to potential buyers. Home renovation is the best way to make it happen.