Are you considering renovating your home?
You might wonder how much of your expenses you can recoup when you sell your home. Remodeling magazine has published an annual “Cost vs. Value” Report for the past 20 years to assist homeowners in answering that question. Learn the best info about VIG for commerical renovation.
The 2007 report was just released, and some of the highlights include:
- Exterior improvements should be prioritized as “best value” projects.
- The most expensive home improvements were an upscale siding replacement with fiber cement materials, a wood deck addition, and a midrange vinyl siding replacement.
- The best interior home project nationwide is minor kitchen remodeling; average costs recovered in Houston, Texas, and the West South Central Region are 6% higher than the national average, and best value projects differed slightly.
- The National Association of Realtors and Specpan gathered data from nearly 3,000 web-based survey responses.
According to this year’s report, the percentage of construction costs recovered is lower across all projects this year than in 2006. Slower home appreciation rates due to a lackluster real estate market in most parts of the country and rising remodeling costs are the most likely culprits for the year-over-year drop.
Remodeling, on the other hand, is still a good investment. Over 60% of projects completed in 2007 are expected to return between 65% and 80% at resale. This means that most home improvements will cost you only 20 to 35 cents on the dollar.
Projects at the bottom of the “value” ladder include remodeling a home office, adding a mid-range sunroom, installing a backup generator, and garage additions.
Dependent on Location
The amount you recoup at a sale varies by location, as you might expect. For example, while the percentage of costs returned in Mid-Atlantic and New England cities is consistent year to year, remodeling costs recouped at resale in California, Oregon, and Washington are more than 10% higher than the national average.
Also, cities in the southeast and southwest experiencing a building boom perform worse than the national average in recouping home improvement costs. One explanation for this trend is that buyers are turning their backs on even the most appealing renovated older homes because there are so many new homes on the market and falling in price in these areas.
Renovations in Houston, Texas
The study found that Houston, Texas, real estate, and the West South Central Region of the United States differed slightly from national averages.
The following are the top renovation projects (and the expected “cost recouped” at the sale:
- Replacement of fiber-cement siding (93%)
- Bathroom renovation (91%).
- Minor kitchen renovations (88%).
- Basement renovation (87%)
- The addition of a wood deck (86%)
The following are the lowest-value renovation projects (and the expected “cost recouped” at the sale:
- Sunroom expansion (59%).
- Home office renovation (64%).
- (68%) Installation of a backup power generator
- Replacement of roofs (69%)
- Garage expansion (71%).
As fluctuations in the US housing market continue to affect home buyers and sellers across the country, it is critical to stay informed about the factors that influence the value of your home. Like investing in stocks and mutual funds, your decision to remodel your home should begin with carefully assessing your current situation and future goals.