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December 1st, 2006 categories: For Home Buyers, For Home Sellers, Real Estate News
Cost vs Value
A trade magazine just came out with their yearly look at what a typical home remodeling project returns on your investment in different markets across the country. I think it’s fair to say that most people consider a kitchen remodel to be the best value in so much as one could recoup much of the costs when selling the home because it brings that much more value to the home in general. That’s a true statement. Especially in a vacuum that doesn’t consider market conditions, neighborhoods, the rest of the home in question, etc. etc.
Not surprisingly, bathrooms come in a close second. In fact, Nationally averaged, kitchen and bath remodels both recouped 85% (but at 75% and 72% respectively in our East North Central region) of the costs associated with the rehab. The bad news here is that nationally, the recouped value of improvements has declined to levels last seen in 2002–mirroring the slowing housing market in many parts of the country. Oh, and would you believe that the average costs to do the rehabs have climbed steadily every year
Let’s remember, though, that both home sales and home remodeling have been at record numbers for about 5 or 6 years now. That helps keep everything in perspective. In our Region, the percent of costs recovered for Columbus trailed only Chicago and Madison.
Kitchen – Avg Cost=$17,667 Avg resale value=$15,314 for 86.7% of rehab costs recovered. (This is for a Kitchen remodel that is pretty thorough but considered Minor. If you want to know exactly what we’re talking about, email me. A major kitchen remodel was an average of $56,277 for our region and recouped 69.1% of the associated costs.)
Bath – Ave Cost=$12,623 Avg resale value=$9,103 for a 72.1% cost recovery.
Home Office – 53.2% costs recouped
Basement Remodel – 59.9% of costs recouped.
Midrange or upscale roof replacements – 62.2% cost recovery average for our region.
Master Suite Addition – 63% cost recovery average for our region with an avg cost of $99,600.
To find out more, check out www.costvsvalue.com
