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Master Suite Addition: Return on Investment

Published: November 4, 2010
A master suite addition is a very popular—and very expensive—home improvement. Some home owners will recoup more of their investment than others.

Return on Investement
A master suite addition is one of the most expensive home improvements you can make. The private bed-and-bath combo for the masters of the house costs an average of $106,196 with midrange appointments and as much as $227,178 if you go with top-of-the-line fixtures and finishes, according to the 2011-2012 Cost vs. Value Report from Remodeling Magazine. You can expect to recoup about 59.2% of your investment on a midrange master suite addition, and 50.5% for a high-end job, based on national averages.

The biggest return

The highest rate of return on a master suite addition is in the west-south-central portion of the U.S., where an average $91, 971 master suite addition recoups about $60,000, about a 65.6% return. The lowest rate of return is in the west-north-central part of the country; in Minneapolis, for instance, a $106,200 master suite addition recoups about $54,000, a 50.8% return.

Keep up (or down) with the Jones

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.

National average cost, 24 x16 ft. master suite with midrange appointments:

Job cost: $106,196
Resale value: $62,874
Cost recoup: 59.2%

National average cost, 32x20 ft. master suite with upscale appointments:

Job cost: $227,178
Resale value: $114,822
Cost recoup: 50.5%

Regional info:

New England

Middle Atlantic

South Atlantic

East South Central

West South Central

East North Central

West North Central



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