Best Remodel Bang for the Buck
May 29th, 2007
If not in the market to upgrade or downsize your home, you may be looking to plow some money into a remodel project. I am often asked, “What are the projects that will yield the best return at the time of resale?”
REMODEL Magazine (and the National Association of Realtors) attempts to answer those questions annually in their “Cost vs. Value” study. They survey over 100,000 agents and appraisers across the nation to determine the value estimates for various home improvements. Here is a sample of their findings for Portland (and the West Coast*) vs. the national average:
| Job Cost | Resale Value | Cost Recouped |
National Avg. |
|
| REMODELS | ||||
| Minor Kitchen Remodel |
$18,241
|
$16,855
|
92%
|
85%
|
| Bathroom Remodel |
$14,731
|
$15,013
|
102%
|
85%
|
| Home Office Remodel |
$20,936
|
$14,037
|
67%
|
63%
|
| Basement Remodel |
$62,103
|
$57,381
|
92%
|
79%
|
| ADDITIONS* | ||||
| Bathroom Addition |
$34,311
|
$31,195
|
91%
|
75%
|
| Deck Addition |
$16,297
|
$14,846
|
91%
|
77%
|
| Family Room Addition |
$88,731
|
$72,247
|
82%
|
72%
|
| Master Suite |
$111,157
|
$95,916
|
86%
|
73%
|
| REPLACEMENTS* | ||||
| Roofing (midrange) |
$17,060
|
$15,160
|
89%
|
74%
|
| Siding (fibre-cement) |
$13,859
|
$13,783
|
102%
|
88%
|
| Window (vinyl) |
$15,200
|
$14,679
|
97%
|
85%
|
Siding and window replacements appear to have a 1:1 return ratio, along with a bathroom remodel. I tend to think the Portland/West Coast* returns are higher primarily to a stronger housing market than the rest of the nation.
Perhaps your first decision should be to repair any obvious defects or worn-out features (a subject for a future article). If you intend to sell your home in the near future, and you think some items will be flagged by a professional home inspection, get them fixed now.
Other remodels and upgrades can improve energy efficiency, curb appeal, and livability, but some won’t pencil at resale time. You might want to check with an agent before investing in a major remodel or addition. Will granite counters and solid wood floors be out of place in your neighborhood? Will that family room addition make your home the largest on the block? Will you get your investment back, lose money, or come out ahead if you intend to sell in the near future?
* ADDITIONS and REPLACEMENTS data are regional numbers (AK, CA, HI, OR, WA), whereas the REMODELS information is specific to the Portland market.
Contact me for more information from REMODEL magazine’s report.
Technorati Tags: real estate, home, house, remodel, replacement, addition, value, construction
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