costvsvalue20152015 Remodeling Cost vs. Value: Less Is More

Great article written by Stacey Moncrieff published by Realtor.org.
Smaller replacement projects, particularly those that enhance curb appeal, remain the most cost effective way for sellers to improve value.
JANUARY 2015 | BY STACEY MONCRIEFF
With home price gains slowing in most parts of the country, sellers will be looking for ways to get top dollar for their listing. Cleaning and staging make a big difference. But for some sellers—such as investors seeking to bring a property up to neighborhood standards before the sale—remodeling work may be the ticket.


What Is the Cost vs. Value Report?

The Remodeling Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of REALTORS® and REALTOR® Magazine, provides estimated costs for 36 midrange or upscale home-improvement projects, along with the percentage of cost that owners can expect to recoup when they sell. Projects range from a new garage door to a master suite addition.

Project costs for the 102 markets surveyed for the 2015 report were provided by RemodelMax, a publisher of estimating tools for remodelers, using Clear Estimates remodeling software. NAR members provided the expected value of the projects at resale.

To learn more and see all 36 projects broken down by region and market area, visit Remodeling at CostvsValue.com. Click here for New England numbers.

Remodeling magazine’s 2015 Cost vs. Value Report, ©2015 by Hanley Wood LLC. Republication or re-dissemination of the Report is expressly prohibited without written permission of Hanley Wood, LLC. “Cost vs. Value” is a registered trademark of Hanley Wood LLC.

As the 2015 Remodeling Cost vs. Value Report makes clear, large-scale jobs aren’t likely to return sellers their full cost. But there are improvements worth doing in anticipation of an upcoming sale. Some will return almost 100 percent of their cost. Others may not have as great a payback, but they can improve the market position of the property in relation to the competition. (Think about the impact of beautiful kitchen photos on online home shoppers.) In addition, several pricier projects can provide owners with a few years of enjoyment while still offering a decent payback down the road.

As a general rule:

  • Simpler, lower-cost projects tend to return greater value. The national average cost for a steel door replacement was $1,230, for example. That’s the least expensive project on the list, and it ranks highest on the payback scale, returning 101.8 percent nationally on average. In fact, in 43 of the 102 markets surveyed, REALTORS® said the new door would recoup more than 100 percent of its cost. Other projects expected to top 100 percent payback in multiple markets: the midrange garage door replacement, the upscale garage door replacement, the midrange wood window replacement, and the minor kitchen remodel. Notice a pattern? With the exception of the kitchen job, they’re all replacement projects. In general, replacements cost less and provide a bigger payback than remodels or additions.
  • First impressions are important. The replacements that offer the greatest payback are the ones that are most obvious to buyers when they first view a house in person or online, such as new door or garage door. Siding replacement also provides great value at resale—particularly this year’s one new project, manufactured stone veneer,  which is expected to recoup 92.2 percent of its cost nationally on average.
  • Kitchens still offer the most remodeling bang for the buck. The only remodeling job breaking into the top 10 in terms of payback is the minor kitchen remodel with a national average cost of $19,226 and a national average payback of 79.3 percent.

Top 5 projects nationally in terms of cost recouped:

1. Entry door replacement (101.8%)
2. Manufactured stone veneer (92.2%)
3. Garage door replacement—mid-range (88.5%)
4. Siding replacement, fiber cement (84.3%)
5. Garage door replacement—upscale (82.5%)

  • Expect bigger payoffs in the West. In addition to reporting national averages, Remodeling magazine breaks down Cost vs. Value data by Census region. In the Pacific region—which includes Alaska, California, Hawaii, Oregon, and Washington—six projects are expected to top 100 percent payback. The nearest competitor is the East South Central region—Alabama, Kentucky, Mississippi, and Tennessee—where two projects are expected to top 100 percent payback.

Just how much sellers can expect to recoup from home improvements depends on the job and the region of the country they live in. There are also factors that vary from house to house and sale to sale, such as what updates are typical for the neighborhood, the quality of the work, and how important the improvement is to a particular buyer. And while you can’t apply this data directly to any specific house or neighborhood, you can use the Cost vs. Value Report as a starting point in discussions with buyers and sellers about the cost and value of remodeling.

{ 0 comments }

Short on down payment money and thinking about buying a house? Think outside the (jewelry) box! ringinbox

Do you have a ‘retired’ wedding or engagement ring? Or how about an old coin collection, motorcycle, boat, snowmobile or antique car? Forgotten gems and dusty toys may be considered assets provided they are saleable. A little effort can turn items like these into cash money, perfect for that new home that makes your heart go pitter-patter.

There are a few rules to keep in mind during the process because making a large cash deposit without a paper trail is a no-no and might not fly with the lenders.

Make copies of titles or proof of ownership first.

Always create a bill of sale.

Show proof of receiving the money for the item.

Deposit the full amount and keep the deposit slip from the bank.

Dust off your goods and get started!

We have a group of trusted lenders who are happy to answer all your financing questions. It can be complicated and we want you to fall in love with a new home and keep the process nice and sweet. Click here for our list of preferred lenders.

{ 0 comments }

Home Sales in Topsfield, MA – January 2015

February 4, 2015

Single Family 18 Summer Street  Topsfield, MA 3 1.0 $289,900 $280,000 14 Boxford Road  Topsfield, MA 3 2.0 $425,000 $425,000 110 Salem Rd  Topsfield, MA 3 3.0 $519,900 $501,500 79 Alderbrook Drive  Topsfield, MA 4 3.0 $499,900 $505,000 27 East Street  Topsfield, MA 4 3.0 $524,900 $515,250 Condominium 33 English Commons 33 Topsfield, MA 2 […]

Read the full article →

Home Sales in Beverly, MA – January 2015

February 4, 2015

Address #BR #BA List $ Sale $ Single Family 6 Story Ave  Beverly, MA 3 1.0 $299,900 $299,700 13 Phillips St  Beverly, MA 3 1.5 $299,974 $307,500 7 Longwood Ave  Beverly, MA 3 1.5 $377,000 $338,100 13 Crosby Avenue  Beverly, MA 3 2.0 $344,000 $338,500 9 Scenna Road  Beverly, MA 3 1.5 $389,900 $372,000 31 […]

Read the full article →

Home Sales in Ipswich, MA – January 2015

February 4, 2015

Single Family 5 Chattanooga Road  Ipswich, MA 2 1.5 $339,000 $324,500 38 Broadway Ave  Ipswich, MA 3 2.5 $439,900 $401,000 429 Linebrook Rd.  Ipswich, MA 3 2.5 $579,900 $550,000 94 Old Right Rd  Ipswich, MA 4 3.0 $775,000 $730,000 11 Capeview Road  Ipswich, MA 3 2.0 $754,900 $730,000 Condominium 400 Colonial Dr 57 Ipswich, MA […]

Read the full article →

Home Sales in Danvers, MA – January 2015

February 4, 2015

ADDRESS #BR #BA List$ Sale$ Single Family 12.5 Charles Street  Danvers, MA 1 1.5 $269,000 $249,000 125 Ash St  Danvers, MA 3 1.5 $265,000 $255,000 95 Elliott  Danvers, MA 2 1.5 $299,999 $290,000 7 Perkins Rd  Danvers, MA 3 1.0 $330,000 $328,000 18 Briarwood Drive  Danvers, MA 4 2.0 $358,000 $355,000 29 Vista Dr  Danvers, […]

Read the full article →

Home Sales in Hamilton, MA – January 2015

February 4, 2015

ADDRESS #BR #BA List$ Sale$ Single Family 304 ASBURY STREET  Hamilton, MA 4 1.5 $459,000 $440,000 123 Highland Street  Hamilton, MA 3 2.0 $469,000 $450,000 110 Railroad Ave,  Hamilton, MA 4 2.5 $499,900 $495,000 22 Arlington Street  Hamilton, MA 3 1.5 $565,000 $555,000 351 Bay Road  Hamilton, MA 6 5.0 $949,000 $890,000 106 Bridge Street  […]

Read the full article →

Home Sales in Manchester, MA – January 2015

February 4, 2015

Single Family 97 Pleasant A Manchester, MA 3 1.5 $479,000 $470,000 11 Blynman Circle  Manchester, MA 3 3.5 $1,650,000 $1,560,000 22 Crooked Lane  Manchester, MA 4 4.0 $2,150,000 $1,969,999 12 Sea St  Manchester, MA 0 . $320,000 $261,530   This representation is based in whole or in part on data supplied by our MLS partners. […]

Read the full article →

Home Sales in Rowley, MA – January 2015

February 4, 2015

ADDRESS #BR #BA List$ Sale$ Single Family 200 Central St.  Rowley, MA 4 3.5 $495,000 $475,000 Condominium 8 Longmeadow Drive 31 Rowley, MA 2 1.5 $174,900 $165,000 535 Haverhill St.#10 Rowley, MA 2 1.5 $199,900 $199,900 1 Rowley Country Club Rd, Rowley, MA 2 2.0 $539,900 $505,000   This representation is based in whole or […]

Read the full article →

Home Sales in Topsfield, MA – January 2015

February 4, 2015

ADDRESS BR BA LIST SALE Single Family 18 Summer Street  Topsfield, MA 3 1.0 $289,900 $280,000 14 Boxford Road  Topsfield, MA 3 2.0 $425,000 $425,000 110 Salem Rd  Topsfield, MA 3 3.0 $519,900 $501,500 79 Alderbrook Drive  Topsfield, MA 4 3.0 $499,900 $505,000 27 East Street  Topsfield, MA 4 3.0 $524,900 $515,250 Condominium 33 English […]

Read the full article →