There may come a point in time where you will wonder, how much of your investment will be returned if you are going to sell your home. For the purpose of helping homeowners answer that specific question an annual cost vs value report has been researched and published by home remodeling magazines over the past 20 years.
The key highlights of the 2007 report that has been released are as follows:
Exterior upgrades as a focus of the best value projects.
The inclusion of mid-range vinyl siding replacement, wood deck addition, fiber cement materials used as upscale siding replacement materials and more as the highest valued type of home enhancements.
Minor kitchen remodeling is considered as the best among the interior home projects nationwide.
The recoup rate of the average cost in West South Central Region and Houston Texas Have a slight difference of 6% higher compared to the best value projects and the national average.
A web-based survey with 3,000 respondents has been conducted by Specpan and The National Association of Realtors in order to collect this information. The report that has been conducted this year have shown that there has been a decline on the percentage rate of the recovered construction costs compared to last year’s due to the housing market slump. The high rising remodeling costs including the lowered rates of home appreciation due to the lackluster real estate markets all over the country is to be blamed for the yearly drop.
Although, remodeling is still considered as one of the best type of investment. About 60% of home remodeling projects of 2007 is expected to have a home resale return rate of 65% minimum and 80% maximum. This only means that most home improvement projects only have a real cost of $0.20 to $0.35 for every dollar of investment on the project.
Projects such as garage additions, backup generator installations, mid-range sun room additions and remodeling of home office ranks at the bottom of the recoup “value” ladder.
The Location Variation
When it comes to sale recoup variation, the location is usually a determining factor. Records of the survey shows that Washington, Oregon, and California have a 10% higher resale recoup of home remodeling costs, aboe the national average compared to New England and Mid-Atlantic which is only having a constant year-to-year percentage return cost.
Interestingly enough, southwest and southeast cities are having home improvement recouping costs that are below the national average despite the building boom that they are experiencing. The new homes that is located near the market with lesser price are to be blamed on why buyers in these cities turned their backs even on the most attractively renovated older homes at sale.
Renovations On Houston Texas
Studies also shows a slight difference between the national averages and West South Central Region of the US as well as Houston Texas.
The following are their suggested top renovation projects including the cost recouped expectations:
- Siding replacement with fiber cement at 93%
- Bathroom remodeling falls at 91%
- Minor kitchen remodeling at 88%
- Basement remodeling and Renovations at 87%
- Addition of wood decks at 86%
Renovation projects that are at the bottom of the “value” ladder and their corresponding cost recouped sale expectations:
- Addition of sun room at 59%
- Remodeling and renovations of home offices at 64%
- Backup power generator installation at 68%
- Roof replacements and repairs at 69%
- Garage additions with a value of 71%
Staying updated with the current factors that impacts the current alue of your home is very important, especially today when home buyers and sellers are affected by the impact on the fluctuations within the US housing market. Much like any other type of investment, deciding for a home remodeling project needs to be decided based on the evaluated future goals and current financial status as well.