Does a wine cellar increase home value?

For any home reno, the value of the upgrade is always an important consideration. Folks want to know if they will get their money back on the project when it comes time to sell, right!?!

It's given fact that the bathrooms or kitchen are considered obvious upgrades that will result in a positive return on investment.

But what about a bespoke wine cellar?

Let's start with cost. A concept-to-completion wine display can start at a few hundred bucks and easily shift into five figures. Here are some guidelines:

• Wine Display, no cooling: $500+
• Small conditioned wine room (think closet): $15,000
• Typical mid-sized wine room: $25,000-$50,000
• Large wine rooms: $50,000+

How much of that should a homeowner expect to get in return? Probably not nearly as much as spent.

A safe bet is to assume a $1 to $1 return up to about $5,000 when you sell. Since many wine projects are 5x that or more, understand that much of the value of a wine room comes down to personal enjoyment.

But they are rooms that bring plenty of enjoyment to vinophiles. Years of storing amazing wines, pulling them from the cellar for lavish dinner parties or quiet evenings with cheese and a book. That sorta thing.

That said, there is more than simple enjoyment when it comes to recouping the blood, sweat, and tears (and money) that accompanies this home improvement project. According to several studies and those in the industry, wine displays are an important factor in making a home sell quickly and at a great price.

Fact 1: A National Association of Home Builders Study in the 2010s found that 31% of new home buyers with an average annual income above $150,000 named a wine cellar as the most desired amenity (pro tip: media room came in at No. 1).

Fact 2: According to Zillow.com in a 2017-18 survey regarding upscale upgrades, homes with wine cellars netted a 31% premium. Not bad!

Fact 3: Informal conversations with real estate professionals throughout the US have confirmed the 5% rule. As in, for homes in the top 5% of the local market, a wine cellar is essentially a must have to keep the property competitive.

Brass tacks: Even if it won't pay for itself exactly, you can safely advise your clients to the facts that wine rooms move the needle both in terms of sales price and velocity, both of which have significant value when the day comes to sell.

Until that day: the value is sky high for the wine lover who loves to collect and display choice vintages. That is priceless.

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We cover this topic, construction considerations, design tactics, and more in our CEU: Six Steps to Designing a Modern Wine Cellar.

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