When homeowners remodel their homes in order to sell, they take into account the cost of the job versus the resale value of the specific project. A recent study was done that took into account 35 different remodeling projects and their current price compared to last years price.
The remodeling projects were as following:
- Attic Bedroom
- Backup Power Generator
- Basement Remodel
- Bathroom Addition
- Bathroom Remodel
- Deck Addition (composite)
- Deck Addition (wood)
- Entry Door Replacement (fiberglass)
- Entry Door Replacement (steel)
- Family Room Addition
- Garage Addition
- Garage Door Replacement
- Home Office Remodel
- Major Kitchen Remodel
- Master Suite Addition
- Minor Kitchen Remodel
- Roofing Replacement
- Siding Replacement (vinyl)
- Sunroom Addition
- Two-Story Addition
- Window Replacement (vinyl)
- Window Replacement (wood)
According to the data brought to the survey by remodeling.hw, this is the second year in a row where the cost-value ratio for remolding projects has risen. In 2006, the cost-value ratio began to decrease each year until the ratio spiked back up in 2013. Back in 2005, the cost-value ratio was at 86.7%, the highest it’s ever been. In 2014, we are seeing a cost-value ratio of 66.1%. The increase from 2013 to 2014 is the second biggest increase (5.5 percentage points), whereas the biggest increase was from 2004 to 2005 (6.1 percentage points). All of this data shows that the increase in resale value was greater than the increase in construction costs. There was an increase in construction costs by 2.2% and an increase in resale value by 11.5%. Back in 2010, construction costs dropped dramatically, but the resale values dropped even further. The resale values eventually picked back up in 2013 with continued low construction rates, improving the cost-value ratio that we are seeing today. This is good news for the remodeling industry, and could be a good sign for the overall housing market improvement.
from Realtor Sarah Sitar Interior Design http://ift.tt/1x3VAYO
via Sarah Sitar Interior Design
Sarah Sitar Remodeling and Interior Design 