The 2008 Cost vs. Value report-an early look

By
Real Estate Agent with RE/MAX 100, Inc.

Each year Remodeling Magazine, in cooperation with REALTOR® magazine, produces the Cost vs. Value report detailing the average return of value for selected home improvement projects.  This report is further refined for each major regional area of the country.deck

The full 2008-2009 report will be available in December, but here are some early observations. Like last year's report exterior remodeling projects lead the pack for recovery on dollars spent.  In fact those projects that boost curb appeal give you the greatest chance for recouping money spent, and still compare well with kitchen remodels.

From a national level here is what you can expect, showing expected recovery:

•·        Upscale fiber cement siding (86.7%)

•·        Midrange wood deck (81.8%)

•·        Midrange vinyl siding (80.7%)

•·        Upscale foam backed vinyl siding (80.4%)

•·        Midscale minor kitchen remodel (79.5%)

•·        Upscale vinyl window replacement (79.2%)

•·        Midrange wood window replacement (77.7%)

•·        Midrange vinyl window replacement (77.2%)

•·        Upscale wood window replacement (76.5%)

•·        Midrange major kitchen remodel (76.0%)

Home owners often wonder where their money will be safest during a sour financial market and as it has always been, investing in your home always pays off!  These numbers reflect a payback upon sale one year after the remodel, and are only averages. If you provide most of your labor the recovery will be even stronger

Many regions, the west coast in particular, often see recovery greater than 100%, while on the flip side Midwestern cities such as Cleveland, Chicago, and Milwaukee have some of the lowest recovery numbers.

Does it make sense to perform a major remodel just prior to a home sale?  Depends.  If the cost recovery is less than 100%, not really.  If your work will actually produce a gain, or a sale at a reasonable price is being hampered due to the lack of the project, then it may be to your advantage to proceed.  Your best direction is to always consult a Realtor to assist with which path to take.

Jerry Hart                                  Denver Real Estate info

Comments (1)

Anonymous
John lemming

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Some say that the most important is value. Others claim that it is cost. “Cost vs Value” will be the main topic if you decide to make a home remodeling. You will really appreciate the results, no matter the cost, if you are ready to pay the price.

A helpful advice is to have a look at the average projects’ costs. However, in our contemporary days, not all companies are willing to assist you in the right way. You are really lucky, if you have found such company.

Do not think just of a standard remodel- you'll need a specific remodel. If you can't estimate the exact amount of money that you’ll need, simply go to www.remodelormove.com and use the “Cost vs Value” free online calculator. It will help you a lot. After doing this, you can hire a real estate agent and a contractor.

Dec 08, 2008 03:25 AM
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