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What Value Can I Expect Out of Remodeling My Home?

By
Real Estate Agent with Jane Campbell, Keller Williams Realty

 

Remodeling Magazine publishes an annual Cost vs Value Report.   Here are a few highlights from their report.

 

On most projects the value of remodeling trended down in 2007 compared to 2006.  The likely culprits for the year to year drop; rising remodeling costs and slowing home appreciation brought on by lackluster housing markets.

 

The cost recouped on a given remodeling project depends on a wide variety of factors.  These include the condition of the rest of the house, the value of similar homes nearby and the rate at which property values are changing in the surrounding area.  A home's urban, suburban or rural setting also affects its value, as does the availability and cost of new and existing homes in the immediate vicinity.

 

Here are findings on some remodeling projects:

 

Regional area - East South Central - AL, KY, MS, TN

 

2007 Averages

Project

Job Cost

Resale Value

Cost Recouped

Bathroom

$14,559

$12,155

80.6%

Major Kitchen

$52,356

$42,498

81.2

Minor Kitchen

$20,412

$17,341

85.0

Home Office

25,826

$16,221

62.8

Sunroom

65,273

40,764

62.5

Roofing

16,987

12,067

71.0

Windows (vinyl)

9,571

7,123

74.4

 

 

To read the entire report visit www.costvsvalue.com

Comments (2)

Richard Parr
ADT Security Services - Slidell, LA
Home Security Specialist - Greater New Orleans, Louisiana
I have told clients that they probably will get only 70-80% at best on remodeling jobs in this market, but they don't believe it.   I will keep the link for reference.  Thanks.
Feb 04, 2008 07:31 AM
Linda M. Cataldo
Dock Street Realty - Myrtle Beach, SC
Beach Destinations Realty Myrtle Beach
Thanks for compiling this list.  Now I can be more informed when a client asks if it is worth it to remodel when they may be selling in a few years.
Feb 04, 2008 08:08 AM