Special offer

Market Value vs Rising Replacement Costs

By
Real Estate Appraiser with RE/Max Dynamic

This is a valuable piece for all current homeowners out there.  What you paid may actually be less than the home originally cost to build.  Checking with your insurance company is a great idea because costs for materials have increased dramatically in the last five years.  Look at these examples:

FRAMING/TRUSSES             (+19%)                                         ROOF SHINGLES                   (+ 44%)

INSULATION                          (+ 31%)                                        WINDOWS                               (+ 21%)

DRYWALL                               (+ 28%)                                        ELECTRICAL WIRING           (+ 40%)

TILES/CARPETS                      (+ 41%)                                      CABINETS/COUNTERTOPS  (+ 47%)

FOUNDATION                         (+31%)                                        EXTERIOR DOOR                   (+45%)

SIDING                                      (+48%)                                       PLUMBING                               (+30%)

  TOTAL CONSTRUCTION COST*   (+31%)

  *excluding labor and demolition

Some companies are offering 125 percent of the home's insured value.  Please consult your home insurance company for more details.  Average construction costs for 2008 will be available summer 2009.

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