Home Improvement Projects - What's the remodeling return?

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Real Estate Agent with RE/MAX Suburban
https://activerain.com/droplet/VXP

The Cost vs. Value Report for 2013 has been out reporting the top improvement projects that get the most 'bang for your buck' when remodeling.  Some of these examples I absolutely do not agree with but I just report the real estate news around here!  If you were planning on staying in your property for several years or had purchased a foreclosure that needed to be updated some of these costs would not be recouped in a short amount of time. This is based on our current market standards where the market is improving but there have really been no significant price increases.

1. Entry door replacement (steel)
 
Estimated job cost: $1,257 - Return on investment = ROI at resale: 82.3%

2. Window replacement (wood)
 
Job cost: $12,424 - ROI: 76.8%

3. Window replacement (vinyl)
 
Job cost: $11,299 - ROI: 74.6%

4. Attic bedroom
 
Job cost: $58,216 - ROI: 73%

5. Minor kitchen remodel
 
Job cost: $21,894 - ROI: 72.8%

6. Siding replacement (vinyl)
 
Job cost: $13,763 - ROI: 71.8%

7. Garage door replacement
 
Job cost: $1,740 - ROI: 68.5%

8. Major kitchen remodel
 
Job cost: $62,785 - ROI: 67.5%

9. Deck addition (wood)
 
Job cost: $11,432 - ROI: 67%
 
10. Basement remodel
 
Job cost: $76,172 - ROI: 60.9%
 

2013 Cost vs Value Report Chicago Area Results by Lyn Sims

 

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lyn sims remax suburban  Lyn Sims    Schaumburg IL Area    Northwest Chicago Suburbs  ●  (847)230-7324
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Topic:
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Illinois Cook County Schaumburg
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cost vs value report

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Rainmaker
3,874,070
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Lyn,

I'm not sure I agree with many of these items..wonder how they obtained these percentage returns?

May 18, 2013 10:21 PM #1
Ambassador
3,984,175
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Lyn, And additionally don't forget the other intrinsic value of having something really nice to enjoy yourself (the seller). It can be money well spent just on that account if you really want it.

May 18, 2013 10:38 PM #2
Rainmaker
1,574,424
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Dorie:  I agree, they do this every year & I'm not sure where the results come from actually. $74,000 for an attic bustout? Seller should just move.

Debbie:  Sellers all seem to think that just because they do home projects they should receive every dime spent with a return & that is just not realistic.

May 18, 2013 11:08 PM #3
Ambassador
4,018,128
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Lyn- I'm not sure that I understand or agree with the above stats and keep in mind it's only as good as what was put in. 

May 18, 2013 11:21 PM #4
Rainmaker
581,750
Fred Hernden, CMI
Superior Home Inspections - Greater Albuquerque Area - Albuquerque, NM
Albuquerque area Master Inspector

Hopefully one would remodel to please themselves and not so much what they will get in return. And if you are doing it to sell the home, you must remember that you may not get back what you invest but it can make the home more sellable.

May 18, 2013 11:39 PM #5
Rainmaker
1,574,424
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Fred:  I agree that some of this should be done for the sellers, some is just plain maintenance which shouldn't get a return.  All homes need roofs right?  Without one, there goes your investment.

Kathy:  There is another site that offers somewhat better advice on what projects cost so sellers/buyers get an idea of a guesstimate.  These #'s are high in my estimation.

May 19, 2013 12:06 AM #6
Rainmaker
2,051,149
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Hi Lyn,

Congrats to you on your 700 K points. You need to write a blog about your achievement. Thanks for commenting on mine..

Maybe you should send Kerrie an Email suggesting the t-shirt.. I would but that would mean it would never happen. It is not Kerrie who does not like me.. i suggested your blog and subscribed.  

May 19, 2013 04:38 AM #7
Rainmaker
3,983,869
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I hear agents telling sellers that an addition would increase the vlaue of their home.  The problem the increasse is less than the amount of the up grade most of the time.

May 19, 2013 11:07 AM #8
Rainmaker
1,574,424
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Bill:  I think that in certain circumstances it would be better to just move. One example above is just ridiculous (Attic BR) & would not recoop the costs at all.

Besides the people telling the sellers that the value of their home would increase are the contractors themselves! Same with the people down at Home Depot which are just trying to sell you something!  That's what they do afterall.

May 19, 2013 10:24 PM #9
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Rainmaker
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Lyn Sims

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