Remodeling Projects That Have the Best Payoffs – Free iPhone APP
Posted by Ted C. Jones on February 13, 2012
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Remodeling Magazine has released the 2011-2012 study analyzing which remodeling projects have the best payoff for homeowners. This report is must-have information to homeowners, appraisers, Realtors® and real estate agents that are listing homes for sale. Even better, the information is available via a free iPhone APP.
The study looks at the various value added of mid-range and up-scale projects, with the typical costs and value added as follows:
In this report, not only do the researchers give national results, they also invoke the TINSTAANREM clause—There Is No Such Thing As A National Real Estate Market, by differentiating value added amounts depending on which of their nine defined regions of the country the remodeling project is located, also drilling down to individual cities in those regions. For example, when replacing an entry door with a steel door, the national average value added is 102.1 percent (it costs $1,218 and has a net increased value add of $1,243), while in the West North Central Region (Des Moines, Iowa, Minneapolis, Minnesota, Kansas City, Missouri, Omaha, Nebraska, Sioux Falls, South Dakota, St Louis, Missouri, Wichita, Kansas), the steel entry door replacement costs on average $1,219 with an added value of $962—a recovery of 78.9 percent of the cost.
So if you need to assess values of various remodel projects, click to this site (and for those with iPhones, download the APP).
Great information. My compliments to the researchers at Remodeling Magazine.
Ted
I’ve been watching too much HGTV. On the TV shows, remodeling and additions usually have more than a 100% return. I think that your assessment is probably more realistic. I’ve done several major renovation projects myself over the years and they usually finish about 10%-15% over budget and involve at least one expensive surprise.
I think that your calculations are a little bit high.
These are not my personal calculations. As with any statistic, the underlying poplation will be highly variable.
Ted
Thanks for the post. Really helpful information, this is a great resource.