By Melissa Dittmann Tracey, REALTOR(R) Magazine
Home owners are investing in their homes once again, according to recent industry surveys that point to a strong rebound taking hold in home remodeling. Home owners also may be seeing higher gains from some of these remodeling projects at resale, according to the most recent Cost vs. Value Report, which reviews the top remodeling projects that offer the highest returns at resale. The Cost vs. Value Report is conducted each year by Remodeling Magazine, in conjunction with REALTOR(R) Magazine.
So, which remodeling projects offer the potential for some of the biggest pay-backs at resale? The following mid-range remodeling jobs offer the highest returns, according to the 2013 Cost vs. Value Report.
A recent article at The Street lists 10 common home projects that drain home owners’ budgets and offer little return on investment, in citing findings from Remodeling Magazine’s annual Cost vs. Value survey. Do you agree with some of the projects that showed up on its list? Are these home projects a waste of money for home owners to tackle when it comes to boosting their resale value?
1. Pools: A $25,000-$50,000 investment and that doesn’t include the yearly maintenance costs and repairs that will undoubtedly be needed down the road.
2. Outdoor kitchens: Steel grills and gourmet pizza ovens outside can be nice in year-round warm climates but in cooler weather climates, many people would prefer the warmth of an indoor kitchen.
3. Garage addition: The cost of adding a garage spot could be about $58,000, but it only adds about $33,000 extra to your home’s value. You’d be better off replacing the garage door–which offers up to a 70 percent return on your investment at resale.
4. Backup power generator: A $15,000 expense can be extreme for the main reason to “prevent $30 in groceries from spoiling the next time a transformer blows,” The Street notes.
Every year, REALTOR® Magazine teams up with Remodeling magazine to provide the Cost vs. Value Report–an annual report that reveals which remodeling projects offer the biggest returns at resale. They are now collecting data for the 2011-2012 report and need your help! Brokers, sales associates, and appraisers are encouraged to participate in the survey, which asks you to estimate the resale value of 35 remodeling projects. Those eligible to participate must live in one of the 80 metro areas evaluated.
To take the Cost vs. Value survey and learn more, visit: www.specpan.com/costvalue
Complete the survey by Sept. 30, and you’ll also be entered into a special drawing to win one of three $500 gift cards.
Also, visit REALTOR® Magazine online to check out previous Cost vs. Value surveys to help ensure that your clients spend their remodeling dollars wisely.
By Melissa Dittmann Tracey, REALTOR® Magazine
A “minor” kitchen remodel will cost home owners, on average, $21,695, according to the Cost vs. Value survey, an annual report by Remodeling magazine, in cooperation with REALTOR® Magazine, that reveals the top remodeling projects offering the highest returns at resale. Home owners stand to recoup about 72 percent (or $15,790) of that investment from a kitchen remodel when it’s time to sell too.
So the kitchen can offer some big payback at times of resale, but for the average home owner, $21,000 nowadays may be too much for their budget. So what should you do when a dated kitchen is still in desperate need of some TLC? Continue reading »
By G. M. Filisko, contributing writer, HouseLogic
Sellers who replace their front door may get a full return on their investment or even turn a profit from the increase in their home’s value, according to Remodeling Magazine’s most recent annual Cost vs. Value Report. A new door will also boost their home’s curb appeal—and may even be eligible for a tax credit to boot.
Help sellers sift through their front-door options—steel, fiberglass, or wood—with tips now available in the June “Exterior Upgrades” package of articles at the REALTOR® Content Resource. Here are some of the pros and cons of steel doors:
1. If you’re looking to save money, a steel door may be a good choice, particularly if you have the skills to hang it yourself. A simple, unadorned steel door can sell for as little as $150 (not including hardware, lock set, paint, or labor) and typically runs as much as $400 at big-box retailers. Steel offers the strongest barrier against intruders, although its advantage over fiberglass and wood in this area is slight.
2. Replacing your entry door with a steel model actually reaps a profit in added home value. Remodeling Magazine estimates the total project cost of installing a 20-gauge steel door at about $1,200—and the project, on average, returns about 129% of cost or $1,400. Continue reading »
By Filomena M. Thompson
Short sales and remodeling … NOT a good idea! If your client is unfortunate to have to sell their home as a short sale, the last thing she’ll want to do is make any home improvements.
Short sales are named as such because the seller has to sell his home for less than what he owes the lender and the lender has to approve the offer that is received. If the lender refuses to process the sale of the property as a short sale it will go to foreclosure.
Making any remodeling improvements to the home will likely make no difference in the lender approving the short sale. What’s more, if your client doesn’t have the money to stay in the home, how can he possibly have money to remodel?
If your client is not in a short sale situation and would like to make a few improvements before putting it on the market, then go for it. Contact an ethical, reliable contractor from the National Association of Remodeling Industry (NARI) network and make those improvements.