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Are Home Remodel Projects Worth the Money?

Don't Tax Me So Much!

Fix Me Up!

Thinking of remodeling or fixing up your home? The question quickly comes; how much does this remodel or fix up cost vs how much value does it add to my home? Well the folks at the National Association of Realtors Magazine put together some stats that might help in determining if the cost is worth while in added value. Keep in mind, if the remodeling is to help sell your home, the home remodeling /improvement may be necessary just to sell your home at any price. Remember, painting and decluttering are the least improvements and bring the most bang for your buck anytime. Then again, if you have to replace that garage door, it may be worth the cost in order to get the house sold and the dollar return is good at 71.9% of cost vs. value. See part of the entire Cost vs Value Report for 2011-12 below.

Optimizing the use of space in a home will not only attract buyers but also give sellers more bang for their buck, according to Remodeling’s “2011–12 Cost vs. Value Report,” conducted in cooperation with REALTOR® Magazine and NAR’s HouseLogic.com.

An attic bedroom addition costing $50,148 was expected to recoup 72.5 percent of the cost nationally—inching up 0.3 percent from the 2010–11 report. The minor kitchen remodel also fared well, returning an estimated 72.1 percent of the nearly $20,000 job cost.

The report looks at the estimated cost and expected resale return of 35 mid range and upscale remodeling projects in 80 markets.  The estimated costs and returns were derived from a survey of more than 3,000 REALTORS® conducted last summer. As in past years, REALTORS® picked exterior projects to recoup the most at resale. Among those, new fiber-cement siding was expected to provide the highest return, recouping an estimated 78 percent of the $13,461 cost.

Top 6 Returns

Siding Replacement (upscale) – fiber-cement     
Job Cost: $13,461
Resale Value: $10,493
Cost Recouped: 78%

Entry Door Replacement – steel    
Job Cost: $1,238
Resale Value: $903
Cost Recouped: 73%

Attic Bedroom Addition        
Job Cost: $50,148
Resale Value: $36,346
Cost Recouped: 72.5%

Kitchen: Minor Remodel             
Job Cost: $19,588
Resale Value: $14,120
Cost Recouped: 72.1%

Garage Door Replacement          
Job Cost: $1,512
Resale Value: $1,087
Cost Recouped: 71.9%

Garage Door Replacement (upscale)               
Job Cost: $2,994
Resale Value: $2,129
Cost Recouped: 71.1%

Remodeling’s2011-12 Cost vs. Value Report ©2011 by Hanley Wood, LLC. Republication or redissemination of the Report is expressly prohibited without written permission of Hanley Wood, LLC.“Cost vs. Value” is a registered trademark of Hanley Wood, LLC.Visit www.costvsvalue.com for information on all 35 projects. There, you can also download a free PDF providing information on average cost and resale value nationally, regionally, and in a specific market. Estimates for construction costs were compiled by HomeTech Publishing.

 

Need a home to remodel? Drop me an email: EARL@EARLPARK.NET or phone: 770-377-5793

 

 

 

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