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2012-13 Cost vs. Value: Make the First Impression Count
February 11, 2013
Updating the outside of a home pays off, according to this year’s Cost vs. Value Report. Real estate professionals ranked exterior improvement projects as winning the buyers’ eye and providing sellers with the most return on investment.
If your clients are wondering what home improvement projects will give them the best return on the sale of their home, tell them to think “curb appeal.”
When buyers are shopping for a home, the exterior can make (or break) the first impression. According to the 2013 Cost vs. Value Report, exterior replacement projects are among the most valuable home improvements that sellers can currently invest in, starting with the front door.
A steel entry door topped this year’s survey with an estimated 85.6 percent of the costs recouped at resale. The steel door replacement is also the least expensive of the 35 midrange and upscale remodeling projects included in the survey, costing $1,137 on average.
This is the 15th year that Remodeling magazine — in cooperation with REALTOR® Magazine — has released the Cost vs. Value Report. This year’s survey included more than 3,900 appraisers, sales agents, and brokers across the country who provided their opinions and estimates.
Exterior projects dominated the list with six of the top 10 most cost-effective midrange projects and eight of the top 10 upscale projects.
Top 10 Midrange Projects1. Entry Door Replacement (steel) 2. Deck Addition (wood) 3. Garage Door Replacement 4. Minor Kitchen Remodel 5. Window Replacement (wood) (tie) 6. Attic Bedroom Addition (tie) 6. Siding Replacement (vinyl) 7. Window Replacement (vinyl) 8. Basement Remodel 9. Major Kitchen Remodel 10. Deck Addition (composite) |
Top 10 Upscale Projects1. Siding Replacement (fiber-cement) 2. Garage Door Replacement 3. Siding Replacement (foam-backed vinyl) 4. Window Replacement (vinyl) 5. Window Replacement (wood) 6. Grand Entrance (fiberglass) 7. Deck Addition (composite) 8. Major Kitchen Remodel 9. Bathroom Remodel 10. Roofing Replacement |
Ending a six-year cost-value ratio decline, this year’s Cost vs. Value Report is good news for remodeling industry with a rise in the ratio by three percentage points to 60.6 percent. According to the report, lower construction costs and stabilizing house prices were the principal factors for the upturn.
While every region improved over last year’s survey, the Pacific region — Alaska, California, Hawaii, Oregon, and Washington — had the highest average cost-to-value ratio overall at 71.2 percent, despite having the highest construction costs in the country.
Visit www.costvsvalue.com to find information from the 81 cities included in the survey and download free PDFs that include specific market data. Site registration is required. Also visit HouseLogic.com for a slideshow of the report’s results.
Construction cost estimates were generated by RemodelMAX. Cost vs. Value is a registered trademark of Hanley Wood, LLC.
Extravagant Home Improvements You Wish You Had
November 29, 2011
Tired of pinching pennies? Weary of the recession? Dream along and pretend we can afford these top-shelf home improvements. But don’t worry if these budget-stretchers are out of reach — we’ve got you covered with smart advice for alternative products and systems that will make you feel luxurious without draining your bank account.
Borrow the breeze
Throw the switch on your very own wind turbine and you’ll get a 50% to 90% reduction on your electrical energy bills. The price of all this efficiency is about $40,000 for a 10-kilowatt turbine, a steel tower, and professional installation. If that’s not in your budget right now, a little regular maintenance will keep the HVAC system you have running at peak efficiency. Credit: Bergey Windpower Company
Vintage storage
Wine connoisseurs know that the beverage itself is only part of the fun — a glass-front, temperature-controlled wine cellar adds to the delight. For wine aficionados who collect as well as sip, storage is a must — the wine cellar shown here holds 1,346 bottles. Ceramic tile floors, hand-carved trim, stained glass, and lighted racks add up to a $70,000 taster’s haven. If your storage needs are more modest, check out under-stairs storage solutions that gobble up clutter. Credit: Wood wine racks by Wine Cellar Innovations
Some like it hot
Stoves from La Cornue are known as some of the world’s most elegant cooking appliances. Each is handmade, and can be ordered as gas, electric, or a combination of both. Choose from 25 enameled finishes and 12 metallic trims. The GrandPalais 180 model features dual ovens and retails around $45,000. For that, you could buy a dozen top-of-the-line, double wall ovens with options that include convection heat, temperature probes, and variable broiling. Credit: Culinary Architecture by La Cornue
Keepin’ your cool
With an insulated glass panel that lets you check contents before opening the door, the stylish Sub-Zero Pro48 is billed as one of the most expensive — and best — refrigerators on the market. Listed at a cool $15,540, the Pro48 features an LCD touch-pad that controls two compressors and three evaporators. Be sure to green clean the inside of your Pro48 so that it’s nice and tidy if guest should peer through the window. Credit: Sub-Zero
Making a grand entry
Nothing quite says “welcome” like a pair of custom-designed, hand-carved entry doors made of pine, mahogany, or oak. Expect to pay $5,000 to $25,000 for a matched set of custom-made, double-opening exterior wood doors, installed. The price may be worth it: A good-looking exterior door is a big contributor to curb appeal, and helps preserve the value of your home. Credit: Pinecrest, Inc.
Plus-size comfort
If your little slice of heaven is racking up heating and cooling costs, consider a geothermal heat system. A geothermal heat pump system extracts heat and cooling from deep underground to keep your interiors on an even keel, reducing energy usage. The price for a geothermal system can be steep — typically $20,000 for a 3,000-sq.-ft. house. The good news: A system placed in service between Jan. 1, 2009, and Dec. 31, 2016, is eligible for a 30% federal tax credit. Credit: Colorado Geothermal Drilling
Slate roofing: budget-challenging beauty
Slate shingles were once common, but modern roofing, such as asphalt shingles, have become so much more cost-effective that slate is increasingly rare — and expensive. According to Remodeling Magazine’s Cost vs. Value Report, covering a 3,000-sq.-ft. roof with top-quality asphalt shingles costs about $21,000. A comparable slate roof costs $100,000 to $150,000. Nevertheless, if you want a roof that’s classy, fireproof, and will last 100 years or more, slate is hard to beat. Credit: Linda Hartong
Now dream of sugar plums…it’s Christmas time after all!
Oh just put it in the garage
August 13, 2011
On average, a garage addition recoups about 60% of the investment, with the highest rates of return on a basic rather than an upscale job. It’s been my experience that in our area because of the snowy winters – houses with garages have a much higher appeal to buyers. I have several that won’t even look at a house without a garage.
A garage addition makes especially good economic sense in the south-central portion of the country, where home owners can expect to get back almost 66% of the cost of a midrange project, while spending about 13% less than the national average. Returns tend to be lowest in the country’s midsection. In Cleveland, for example, the same garage recoups less than half its cost.
As a general rule, you’re likely to recover a higher percentage of your investment if you build a relatively basic garage–one with open walls, an unfinished concrete floor, and shelves for storage–rather than one with interior drywall and trim, an epoxy floor coating, and designer storage solutions. Such an upscale project runs a national average of more than $90,000 and returns around $48,300, or about 53.6%, of its cost.
But there are financial considerations to adding a garage that go beyond resale value. Protected from the elements, your vehicles will stay in top shape, which could make them more valuable when you sell them. If you include workshop space, you’ll be able to do many home repairs yourself, saving on the cost of pros. And if you outfit the garage so that it’s easy to access stored items, you can save leftover materials, reducing the cost of future projects.
National average cost, 26 x 26 ft. midrange garage addition:
Job cost: $60,600
Resale value: $35,900
Cost recoup: 59.2%
National average cost, 26 x 26 ft. upscale garage addition:
Job cost: $90,100
Resale value: $48,300
Cost recoup: 53.6%
Real Estate and *stuff * 