Hi! I use this a ton. It really helps show the impact on improvements. Here’s the new report:
Steve Slavin, Realtor
The Renovations To Make – And Not To Make – In 2017
Written by Realty Times on Sunday, 22 January 2017 7:58 am
With an uptick in mortgage rates, the expectation is that homeowners may turn toward renovations that help them remain comfortable in their existing home, or make changes that will make their home stand out. Sound like you? If you’ve got renovations on the mind, you’ll want to think smart, and that means paying attention to industry trends that can help guide your decisions. Remodeling magazine’s Cost vs. Value Report can help.
The 2017 report was just released, with 29 projects that show “how much it really costs for a professional to do a typical remodeling project, as well as how much a real estate pro believes that project will increase a home’s value if it’s sold within a year of when the work was completed,” they said.
Overall, “The 29 projects in the 2017 report paid back an average of 64.3 cents on the dollar in resale value,” with some projects, like the not-very-exciting but very effective loose-fill insulation in the attic, counting a much higher return. In fact, this project is the only one on the list that returns more than 100 percent of its cost, at 107.7%.
Projects that improve curb appeal continue to return well. “Replacing a run-of-the-mill entry door with an attractive yet tough steel replacement” comes in at 90.7%,” said Realtor.com, “followed by manufactured stone veneer at 89.4%.”
Cheaper is better – “The report revealed that three of the five projects that provided the biggest returns on investment are also the cheapest to complete, boosting their cost-recouped scores,” said Construction Dive.
One of the additions to this year’s report is universal design bathroom, a response to the continued uptick in baby boomers looking to create the ideal living environment for their retirement period. With a $15,730 spend to: widen the doorway; replace the door and light fixtures; reinforce the walls for grab bars, towel hooks, and seats; lower the height of electrical switches and outlets; swap the tub and shower for a walk-in version with seat; and replace the toilet and bathroom vanity and sink with more height-appropriate and accessible versions, you can expect to recoup 68.4 percent, or $10,766.
Kitchens and baths
They’re the two things that can sell a home, right? But this year’s report shows relatively low ROI for both of these important projects on a midrange spend. A bathroom remodel costs $18,546 and will return $12,024 or 64.8%, while a midrange kitchen remodel will cost an average of $62,158 and return 65.3% or $40,560.
One of the reasons: Projects that involved “remodeling something to make it better, rather than replacing something that’s broken” didn’t score as high. “On average, the replacement projects sport a 74% return on investment, while our remodeling projects pay back just 63.7%,” said Remodeling magazine.
Best Home Design Ideas
You can check out individual projects, and get geographical breakdowns, here.