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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.
New year, new list of remodeling projects to start around the house. At least that’s what remodelers and contractors are hoping.
So, what remodeling projects are on top of everyone’s list?
The National Association of the Remodeling Industry (NARI) conducted an exclusive poll of their top builders and developers for us and found that while most people are not starting major renovation projects due to the economy, now is the time to take care of the smaller jobs around your home.
Call it the over-arching remodeling trend for 2011: Tackling small projects while you wait to do the really big remodeling project that’s on your list.
1. Save Money: Remodel Your Bathroom. Old tile getting a little grungy? It looks like 2011 is the year for a bathroom update. Dennis D. Gehman, president of Gehman Custom Remodeling says, “Bathrooms are the hottest project, we think it’s due to the economy. Baths cost less than a kitchen or addition and most houses have more than one bath, so there are more available to be remodeled.”
2. Must-Do Remodeling Projects. Rather than going through major renovations, next year people will continue to only complete the projects that need to be done, like repairs to siding or roof leaks. Mitch Speck of Specktacular Home Remodeling says he is seeing a trend of people doing “‘have-to’ projects instead of ‘want-to’ projects.”
3. Warming Up The House. Warmer tiles and colors are coming back. People tend to be moving away from minimalist, white designs in favor of cozier, earth tones. The trend, however, is not rustic. Instead, it’ss a mash-up of earthiness and modern design. Judy Mozen, president of Handcrafted Homes, Inc., says she is seeing people favor rooms that are more contemporary and calming, but are “still not totally contemporary.”
4. Getting Decked Out. George Christiansen of Pequot Remodeling Corporation says his clients are building outdoor spaces for themselves. “It appears that people want to sit outside again and are staying at home more frequently. Many pools are also being built in the neighborhood.”
5. Hiring A Great Contractor. Darius Baker of D & J Kitchens and Baths, Inc. says that “consumer diligence” is on the rise. “Folks are finally getting the message that it is important to look closer at the companies they are considering for their project. They are asking the questions we have been telling them to ask for years.”
6. Paying in Cash. Rather than taking out loans for renovation projects, homeowners are using cash for projects. Steve Klitsch of Creative Concepts Remodeling, Inc. says homeowners are giving themselves a budget and picking and choosing what projects they can do with the money. One way to save money is by updating features, like cabinets, but not remodel an entire room.
7. Opening Up Rooms: “Open floor plans are in, so we’re removing interior walls and opening up the spaces in older houses to modernize them,” says Gehman. Open floor plans help families be more flexible with the square footage they already have.
8. Bronze Age. Along the with warmer tones in homes are warmer tones in metallic features. Kathy Adams of J&C Adams Co., Inc. says “oil rubbed bronze, aged bronze, or distressed hardware” will be big in the coming year.
9. Going Green. Bamboo floors, grass thatched roofs, and bark siding may sound like something from “Jungle Book,” but they are just a few of the newest green home products. In addition, people are getting energy efficiency upgrades. Adams says upgrades on glass will be continue to be big, and adds that “people are even asking for tri-pane (windows)!”
10. Industrial Flair. Exposed beams will continue to be popular, but so will “stainless steel cable and architectural products,” says Michell Milestone, director of sales and marketing at JG Development, Inc. With so many people working from home, home will take on more of an industrial or commercial look to enforce business credability.
11. Creating Relaxation Space: With home values still falling in many areas and a new prediction of three more lousy years of real estate, homeowners are more stressed than ever. So it’s no surprise that when they are developing new spaces, tranquility comes to mind. Mozen says people are asking for “zen-like” bathrooms. “The bathrooms don’t have to be big-but they have to be relaxing and soothing. They seem to prefer showers with the works-steam, seats, body sprays, etc.”
12. Planning ahead: “We are seeing many clients thinking about their retirement years,” says Jillian Renner of Golden Rule Remodeling & Architecture, Inc. Her clients-even those far from retirement-are putting in easy-opening cabinetry, hand-held showers, and more accessible kitchens and baths. Renner adds, “Even though the clients don’t need those things right now, they are planning for when they might find them needed.”
Are you planning a remodeling project this year? How much are you planning to spend?