For close to two decades, Remodeling Magazine (and also Remodeling Online) has been doing something that few other publications dare to do. Every December, these publications come out with their Cost vs. Value Report for the preceding year, measuring the estimated average cost of remodeling projects across the U.S. in three major categories. Those categories--additions, remodels, and replacements--each cover about 8 major areas of the house, such as bathrooms, decks, family rooms, master suites, basements, and so on.
Why is the Cost vs. Value Report so unique?
Mainly because it's difficult to pin anyone down in the remodeling industry about general estimated project costs. Now add the other, shakier figures, which are the estimated resale values (they say that this represents over 3000 data points) and you've got a report that really goes out on a limb.
But Remodeling Magazine does its legwork. They use figures from the National Association of Realtors, Indiana-based market research company Specpan, and Maryland-based Hometech Information Systems. These companies cull the results of Web-based surveys, as well as comments from over 2000 Realtors. Additionally, they pull numbers from over 60 metro areas to come up with their report.
What do you find? A wealth of information. Nationwide, a bathroom addition that cost $28918 could be expected to have a value of $21670 upon sale--a 75% return. Or, vinyl window replacements costing $10160 would bring in $8500 upon sale--a nearly 84% return on investment.
That's just mid-range. For upper end projects, you see that wood replacement windows costing $16910 may recoup 82.5% of their value ($13952). And high end roofing costing $24693 would bring in $18012 (73%).
Mainly because it's difficult to pin anyone down in the remodeling industry about general estimated project costs. Now add the other, shakier figures, which are the estimated resale values (they say that this represents over 3000 data points) and you've got a report that really goes out on a limb.
But Remodeling Magazine does its legwork. They use figures from the National Association of Realtors, Indiana-based market research company Specpan, and Maryland-based Hometech Information Systems. These companies cull the results of Web-based surveys, as well as comments from over 2000 Realtors. Additionally, they pull numbers from over 60 metro areas to come up with their report.
What do you find? A wealth of information. Nationwide, a bathroom addition that cost $28918 could be expected to have a value of $21670 upon sale--a 75% return. Or, vinyl window replacements costing $10160 would bring in $8500 upon sale--a nearly 84% return on investment.
That's just mid-range. For upper end projects, you see that wood replacement windows costing $16910 may recoup 82.5% of their value ($13952). And high end roofing costing $24693 would bring in $18012 (73%).
One great improvement in 2006 was the addition of 9 extra sets of regional data (over the 4 previously reported), to make the reports much more granular and accurate.
The main "take-away" for any homeowner intent on remodeling: all remodeling projects depreciate in value, and few reach as high as even a 90% return on investment. And some of the projects we hold most dear to our hearts are the ones with the lowest percentage of cost recouped: namely family room additions, bathroom additions, and master suite additions.
The main "take-away" for any homeowner intent on remodeling: all remodeling projects depreciate in value, and few reach as high as even a 90% return on investment. And some of the projects we hold most dear to our hearts are the ones with the lowest percentage of cost recouped: namely family room additions, bathroom additions, and master suite additions.
