The Remodeling Cost versus Value Report has been used as a guide for real estate and residential remodeling markets as it compares national and regional averages for 33 popular remodeling projects in eight U.S. cities.
The latest data shows the trend is still headed downward, last year's overall cost-value ratio was 67.3%, (down 2.7 points from the year before) this year's ratio is 63.8%, a larger 3.5-point drop. The drop in the number is not really a surprise considering the very volatile real estate year we just experienced, which was filled with foreclosures.
To view the article, click here: http://www.remodeling.hw.net/2009/costvsvalue/national.aspx
Exterior replacement projects seemed to rank the highest in this report and occupy 7 out of 10 of the highest spots. These results support the idea that curb appeal is king and that creating a first impression is very important for all potential buyers. The American Recovery and Reinvestment Act tax credit may also have played a part in these external upgrades, let's face it a tax credit never hurts.
Here are some results of the 2009-10 Cost vs. Value Report:
- Entry Door Replacement (steel) has a 128.9% cost recouped.
- Attic Bedroom has a 83.1% cost recouped.
- Basement Remodel has a 75.4% cost recouped.
- Grand Entrance (fiberglass) has a 68.8% cost recouped.
- Roofing Replacement has a 66.6% cost recouped.
- Entry Door Replacement (fiberglass) has a 65.2% cost recouped.
- Backup Power Generator has a 58.9% cost recouped.
For a home to sell in today's real estate market, the home needs to be turnkey ready and this may be another factor for all the external replacement projects dominating the report. An entry door replacement (steel) will cost under $1,200 but the cost/value ratio is 128.9%, this is a great investment no matter how you look at. The front door of your home is one of the items a potential buyer can see from the street and is very important when you are selling your home.
So, did you spend your remodeling dollars wisely?
Kate
Kate's Home Staging and Redesign serves the Rockland County, Orange County, Bergen County, and Passaic County areas. Kate is a member of the Passaic County of Realtors, Real Estate Staging Assocation, Orange County Chamber of Commerce. For a home staging, interior design, or color consultation, please call Kate at 845-538-3623 or visit www.kateshomestaging.com for more information. A staged home can sell for up to 10% more money; my last staged home received an offer within 24 hours of being on the market!
Good information Kate. We just looked at buying another investment vacation rental and those all important numbers didn't add up like they did for the last one. Maybe next time. Thanks for sharing this.
Ginger ~ My pleasure, hopefully your next vacation home investment will work out for you ;-)
Kate,
You are on a roll - another great article to bookmark. Thanks for sharing.
We are HUGE supporters on this and will be sharing some insights at the RESA conference. This is a great list when working with investors. Thanks for sharing Kate!
Sharon ~ Thanks for your kind words, I always look to the Cost vs. Value Report to help point my clients in the right direction.
Lori ~ My pleasure, I agree that this list does have value when dealing with certain groups. I am so glad RESA does such a great job staying on top of everything that is important to us. Hopefully next year I will be able to make it out to the conference. Thanks for posting :-)
Hello Kate,
Thank you for your excellent post! I appreciate it! Happy Holidays!
Chris