MOBILE:   FAX:
 Welcome to the UtahPropertiesOnline.com Blog

2016-11-04 09:54:54
Remodeling….Finding The Best Return

              

                       

 

In my last blog we talked about the decision to remodel or to move, and the ramifications of both on your life.

Now let’s talk about more of the specifics in the remodel category. As Realtors we are asked about projects you can do with your home to increase the value. Whether you are thinking of selling your home, or just want to update it for your own enjoyment, it is always nice to know that you are spending your money wisely. I’ve included a chart taken from HOME REMODELING Magazine. This chart shows the averages across the country of the costs of certain remodeling projects. The Mid Range Mountain area is the area we live in, from Arizona up through Utah and Idaho. The second column is the National averages for these projects.

 

 

                                   Mid Range Mountain Area          2016 National averages

PROJECT

 

JOB COST

RESALE VALUE

COST RECOUPED

JOB COST

RESALE VALUE

COST RECOUPED

CHANGE VS 2015

Attic Insulation (fiberglass)

$1,268

$1,482

116.9%

$1,248

$1,193

95.6%

-

Backup Power Generator

$12,712

$7,556

59.4%

$12,391

$6,790

54.8%

  up

Basement Remodel

$68,490

$48,194

70.4%

$65,281

$45,725

70.0%

  down

Bathroom Addition

$42,233

$23,727

56.2%

$40,208

$20,600

51.2%

 down

Bathroom Remodel

$17,908

$11,769

65.7%

$17,061

$10,398

60.9%

 down

Deck Addition (composite)

$16,798

$10,819

64.4%

$16,321

$9,618

58.9%

 down

Deck Addition (wood)

$10,471

$7,850

75.0%

$10,058

$6,983

69.4%

down

Entry Door Replacement (fiberglass)

$3,126

$2,574

82.3%

$3,099

$2,045

66.0%

-

Entry Door Replacement (steel)

$1,335

$1,217

91.1%

$1,312

$1,043

79.5%

down

Family Room Addition

$86,615

$58,807

67.9%

$82,820

$57,171

69.0%

up

Garage Door Replacement

$1,652

$1,512

91.5%

$1,588

$1,206

75.9%

down

Major Kitchen Remodel

$59,999

$38,938

64.9%

$58,143

$37,542

64.6%

up

Manufactured Stone Veneer

$7,519

$6,988

92.9%

$7,490

$5,997

80.1%

up

Master Suite Addition

$115,800

$74,224

64.1%

$111,399

$72,348

64.9%

up

Minor Kitchen Remodel

$20,122

$16,716

83.1%

$19,401

$15,177

78.2%

down

Roofing Replacement

$20,142

$14,446

71.7%

$19,230

$12,871

66.9%

down

Siding Replacement

$14,100

$10,857

77.0%

$13,509

$9,244

68.4%

-

Two-Story Addition

$171,056

$118,555

69.3%

$165,823

$117,748

71.0%

up

                              Upscale Mountain areas                2016 National averages

PROJECT

JOB COST

RESALE VALUE

COST RECOUPED

JOB COST

RESALE VALUE

COST RECOUPED

CHANGE VS 2015

Bathroom Addition

$79,380

$45,006

56.7%

$76,815

$40,806

53.1%

down

Bathroom Remodel

$57,411

$32,998

57.5%

$55,965

$31,106

55.6%

up

Deck Addition (composite)

$37,943

$21,877

57.7%

$36,677

$19,837

54.1%

up

Garage Door Replacement

$3,140

$2,830

90.1%

$3,130

$2,289

73.1%

up

Grand Entrance (fiberglass)

$7,971

$5,545

69.6%

$7,889

$4,730

60.0%

down

Major Kitchen Remodel

$119,909

$73,707

61.5%

$117,622

$71,235

60.6%

up

Master Suite Addition

$245,474

$140,448

57.2%

$239,776

$138,509

57.8%

up

Window Replacement (vinyl)

$14,725

$10,794

73.3%

$14,420

$9,907

68.7%

up

Window Replacement (wood)

$18,087

$13,050

72.1%

$17,755

$11,118

62.6%

down

 

 

Does it Make Sense?

Kind of surprising to see the figures above, isn’t it? Who would have thought that putting insulation in the attic would return more value per dollar spent, than a bathroom addition?  In almost every category it shows that you won’t be getting back the money you spent for your remodel. That is true, but, there are other values that will come back to you every time for a remodel that is done properly.

First of all if the upgrade is for you, it is hard to place a value on the pleasure you receive as you enjoy the item or space that has been created as a result of the remodel. The value could be huge.

Second the value will come back to you when you decide to sell as it could make the difference between a buyer choosing your home or a neighbor's home. It could influence a buyer to make a better offer for the remodeled home than he might if it still needed upgraded.

It just makes the home more sellable, or livable should you choose to stay.

 

Which Project Should I Choose?

Where you spend your remodel dollars will be an important decision. Look at your home and identify the areas that really need the attention. A front door might not be very glamourous but it is one of the first impressions an outsider has of your home. What does it tell them? Do this throughout your home before you determine where you will update. Make a list and then prioritize the areas that need a change. Don’t do the project halfway. If you don’t have the funds to finish the room, then wait till you do. A buyer looks at a half completed project as a big negative as they usually think that it will all have to be torn out and redone. Not a great selling point.

In summary, should you take on the renovation monster, remember that you probably won’t be raising the value on paper for an appraisal. But you will be improving your home for an enjoyable lifestyle and at the same time giving it that “wow”  factor for a potential buyer down the road. Now the choice is yours.

 

 

Craig Keyser

The Keyser Team

Allstar Realty 

 
Blog Archive
2017-04-25 11:51:06
Part 2 - 14 Common Mistakes Made By First Time Buy

2017-04-25 11:44:37
Part 1 - 14 Common Mistakes Made By First Time Buy

2017-02-09 11:33:28
Trading Equity

2017-01-24 10:48:57
YOUR DREAM HOME??

2016-11-09 11:43:27
Going To Sell A Home? The Purchase Contract…..

2016-11-09 10:47:39
Going To Buy A Home? The Purchase Contract…..

2016-11-07 10:35:57
Hot Tips For the Cold Selling Season

2016-11-04 09:54:54
Remodeling….Finding The Best Return

2016-10-27 11:24:47
Remodel or Move?

2016-10-24 11:30:20
Before You Splurge!

2016-10-20 12:46:20
Small Things That Can Make Your Purchase

2016-04-04 09:56:17
Fixer-Uppers, Are They For You?

2016-03-29 13:25:03
Landscaping and Home Values, Does it Matter?

2016-03-28 09:47:31
Does it Matter When I List My Home?

2016-03-22 15:22:25
Winter Leaving Heber Valley

2016-03-21 10:33:43
Buying in a Sellers Market

2016-03-11 09:17:11
Think Like a Buyer Before You List Your Home

2016-03-08 16:31:26
4 Things to Know About Mold When Buying a Home

2016-03-01 10:28:32
Guide To Selling Your Home At Retirement

2016-02-01 12:26:45
Are the Wasatch County Schools Good Enough For Me?

2016-01-26 15:05:24
Improving Your Chances of Selling Your Home

2016-01-20 15:26:03
Finding The Right Price Point For Listing My Home

2015-08-07 11:47:35
Improve Your Home Security

2015-07-20 16:19:36
Why Older Homes Rock

2015-07-14 11:16:42
Your Rights Shopping for a Home Mortgage

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.