Home Remodeling:
Cost & Value
In today’s real estate market, whether you are a Buyer, Seller or Holder, the most valuable tool is information. And YES, you are one of those three or thinking about becoming one. In either case, the “Home Remodeling” question comes into play - Do I or Don’t I remodel this house and flip it for profit? Do I want to buy this house and put the work in myself, then live there? Do I want to build a new home? Do I want to remodel my existing home? We can go on and on about the questions alone.
Realtors deal with these vexing scenarios daily. Today’s economy has proved to be a challenge for the real estate market in a number of ways. Yes believe it or not, the prices of real estate have fallen significantly. If you are not aware of that, you are now. Each client possesses a unique scenario that applies to the sale or purchase of a property.
In this post we will be dealing with – Do I want to remodel my existing home?
Proper remodeling of an existing home in effect turns back the clock. My son Matthew has often said to me, “Dad don’t worry, 50 is the new 40”. Well, that didn’t really make me feel better, but I can equate that to remodeling an existing home. Updating a kitchen or bathroom can take years off a homes perceived value. In other words, homes with updated kitchens and bathrooms do garner a better market value than homes that have original fixtures in place. Naturally we are talking about homes that have some age on them. My home was built in 1967 and needs bathroom updating. In 1967 my brother Mitch had this really cool GTO (pictured above with me in July 1967). I bet that car was maintained and restored by someone, somewhere. I think Mitch sold that car in the early 80's. You see where I'm going with this. Right! Homes are the same way. Good maintenance and solid improvements add value to your home. First in the form of comfort and security while you live there and then in the form of $$$ when you decide to sell. How much $$$ is what we are exploring here.
The fact is that home remodeling is a huge part of the real estate industry and there are rankings given to each type of remodeling based on Cost vs. Value returned. I will attempt to give some examples keeping to our region, the Mid-Atlantic, and comparing to national averages. Our figures will come from an article by G.M. Filisko written for Realtor Magazine.
The three categories are Additions, Remodelings and Replacements. Our Region averages are used for job cost, resale value and value recouped upon sale. Our region is the Mid-Atlantic. Highlighted values represent highest value recouped in category.
Additions
Each lines shows the Job Cost, Resale Value & Recouped Value upon sale
Attic Bedroom $53,780, $39,292, 73.1%
Back-Up Gen. $15,290, $8,206, 53.7%
Bathroom $42,441, $22,272, 52.5%
Deck Comp. $15,890, $10,404, 65.5%
Deck Wooden $11,260, $7,917, 70.3%
Family Rm $88,704, $51,991, 58.6%
Garage $62,431, $34,847, 55.8%
Master Suite $111,857, $67,612, 60.4%
Sunroom $76,580, $38,661, 50.5%
2nd Story $165,708, $107,770, 65.0%
Remodeling
Each line shows Job Cost, Resale Value & Recouped value upon sale.
Basement $67,455, $41,127, 61.0%
Bathroom $17,383, $11,817, 68.0%
Home Office $29,525, $13,841, 46.9%
Major Kitchen $59,505, $39,860, 66.5%
Minor Kitchen $22,130, $15,973, 72.2%
Replacements
Each line shows Job Cost, Resale Value & Recouped value upon sale.
Entry Door $1,248, $1,217, 97.5%
Roofing $22,292, $14,508, 65.1%
Siding Vinyl $10,980, $8,920, 81.2%
Window Vinyl $11,408, $8,766, 76.8%
Window Wooden $12,410, $9,248, 74.5%
There are Up-scale values for some of the types of remodeling shown above. For instance, an upscale Bathroom addition can cost $81,266 and resale for $42,240 rendering a 52.0% recouped value. Whereas, an up-scale bathroom remodeling may cost $55,766 and resale for $31,862 and a recouped value of 57.1%.
These figures are regional averages and costs may differ in your particular area. Always get more than one quote for a job that you want done. Comparing price and job quality are important factors in any home remodeling. Check for references whenever you have work done on your home.
In today’s real estate market, whether you are a Buyer, Seller or Holder, the most valuable tool is information. And YES, you are one of those three or thinking about becoming one. In either case, the “Home Remodeling” question comes into play - Do I or Don’t I remodel this house and flip it for profit? Do I want to buy this house and put the work in myself, then live there? Do I want to build a new home? Do I want to remodel my existing home? We can go on and on about the questions alone.
Realtors deal with these vexing scenarios daily. Today’s economy has proved to be a challenge for the real estate market in a number of ways. Yes believe it or not, the prices of real estate have fallen significantly. If you are not aware of that, you are now. Each client possesses a unique scenario that applies to the sale or purchase of a property.
In this post we will be dealing with – Do I want to remodel my existing home?
Proper remodeling of an existing home in effect turns back the clock. My son Matthew has often said to me, “Dad don’t worry, 50 is the new 40”. Well, that didn’t really make me feel better, but I can equate that to remodeling an existing home. Updating a kitchen or bathroom can take years off a homes perceived value. In other words, homes with updated kitchens and bathrooms do garner a better market value than homes that have original fixtures in place. Naturally we are talking about homes that have some age on them. My home was built in 1967 and needs bathroom updating. In 1967 my brother Mitch had this really cool GTO (pictured above with me in July 1967). I bet that car was maintained and restored by someone, somewhere. I think Mitch sold that car in the early 80's. You see where I'm going with this. Right! Homes are the same way. Good maintenance and solid improvements add value to your home. First in the form of comfort and security while you live there and then in the form of $$$ when you decide to sell. How much $$$ is what we are exploring here.
The fact is that home remodeling is a huge part of the real estate industry and there are rankings given to each type of remodeling based on Cost vs. Value returned. I will attempt to give some examples keeping to our region, the Mid-Atlantic, and comparing to national averages. Our figures will come from an article by G.M. Filisko written for Realtor Magazine.
The three categories are Additions, Remodelings and Replacements. Our Region averages are used for job cost, resale value and value recouped upon sale. Our region is the Mid-Atlantic. Highlighted values represent highest value recouped in category.
Additions
Each lines shows the Job Cost, Resale Value & Recouped Value upon sale
Attic Bedroom $53,780, $39,292, 73.1%
Back-Up Gen. $15,290, $8,206, 53.7%
Bathroom $42,441, $22,272, 52.5%
Deck Comp. $15,890, $10,404, 65.5%
Deck Wooden $11,260, $7,917, 70.3%
Family Rm $88,704, $51,991, 58.6%
Garage $62,431, $34,847, 55.8%
Master Suite $111,857, $67,612, 60.4%
Sunroom $76,580, $38,661, 50.5%
2nd Story $165,708, $107,770, 65.0%
Remodeling
Each line shows Job Cost, Resale Value & Recouped value upon sale.
Basement $67,455, $41,127, 61.0%
Bathroom $17,383, $11,817, 68.0%
Home Office $29,525, $13,841, 46.9%
Major Kitchen $59,505, $39,860, 66.5%
Minor Kitchen $22,130, $15,973, 72.2%
Replacements
Each line shows Job Cost, Resale Value & Recouped value upon sale.
Entry Door $1,248, $1,217, 97.5%
Roofing $22,292, $14,508, 65.1%
Siding Vinyl $10,980, $8,920, 81.2%
Window Vinyl $11,408, $8,766, 76.8%
Window Wooden $12,410, $9,248, 74.5%
There are Up-scale values for some of the types of remodeling shown above. For instance, an upscale Bathroom addition can cost $81,266 and resale for $42,240 rendering a 52.0% recouped value. Whereas, an up-scale bathroom remodeling may cost $55,766 and resale for $31,862 and a recouped value of 57.1%.
These figures are regional averages and costs may differ in your particular area. Always get more than one quote for a job that you want done. Comparing price and job quality are important factors in any home remodeling. Check for references whenever you have work done on your home.
