Cost vs Value for Home Improvements
The National Association of Realtors 2015 remodeling impact survey analyzed cost vs value for home improvements with more than just the dollars as a measure of the projects’ successful outcome. They added a caluculation for each project based on the happiness each project gave to the homeowners. They called it a “joy score”. Their scores aren’t recorded in this article but I think it is very important for every homeowner to think about their “joy score” before embarking on a project.
Knowing the cost vs value for home improvements will also make a difference in the home improvement projects you undertake. I usually take the yearly statistics from the annual Remodeling Magazines cost vs value report but this year I dug a little deeper and compared Remodeling Magazine’s statistics with the reports from the National Association of Realtors and Houselogic.
According to Remodeling Magazine whose statistics are based on 30 projects across the country and then broken down into regions and cities. if a home sold within a year there was an average of 64.4% return on investment recouped. Here is a breakdown of the 7 top home improvement projects in St Louis Missouri compared to the national statistics (the statistics from Remodeling Magazine are based on St Louis specifically while the National Association of Realtors and Houselogic are national statistics.) :
- Attic insulation: cost $1270, value $1160, recoup 91.3%
- Fiberglass entry door replacement: cost $3,144, value $2,638, recoup 83.9%
- Wood deck addition: cost $10,468, value $8,683, recoup 83%
- Manufactured stone veneer: cost $7,542, value $5,937, recoup 78.7%
- Steel entry door replacement: cost $1,344, cost $1053, recoup 78.4%
- Vinyl siding replacement: cost $12,820, value $9,531, recoup 74.3%
- Minor kitchen remodel: cost $20,610, value $14,880, recoup 72.2%
On a national level the top 7 home improvements were a bit different ranking as follows in percentage recoup:
- Attic insulation 116.9%
- Manufactured stone veneer – 92.9%
- Garage door replacement – 91.5%
- Steel entry door replacement – 91.1%
- Minor kitchen remodel – 83.1%
- Fiberglass entry door replacement – 82.3%
- Wood deck addition – 75.0%
The statistics were for midrange homes. Garage door replacement ranked in the top seven nationally but not in St Louis. Whereas a wood deck addition ranked in the top seven in St Louis and not nationally.
One of my personal favorites is fairly new to the list but seems to be trending across the country is the manufactured stone veneer. It is popular for the exteriors in many different ways but is also being used for accent walls and fireplaces on the interiors of homes.
The 2016 statistics from Remodeling Magazine were fairly consistent with last year’s report.
Houselogic found these 6 projects to be the best long-term remodeling investments:
1. Replacing Your Front Door A new steel front entry door has a national median cost of $2,000 installed, and can recover 75% of that cost at resale.
2. New Siding According to the “2015 Remodeling Impact Report,” the $12,000 national median cost of a vinyl siding replacement job returns a solid 83%. Fiber-cement siding also shows a strong payback of 79% in the “2015 Remodeling Impact Report.” Although its national median cost of $19,100 makes it the pricier option, it has the perception of quality.
3. Kitchen Upgrade The “2015 Remodeling Impact Report” says you can expect a return of 67% on the $30,000 national median cost of a kitchen upgrade. Even though this is a modest roi it certainly does add to homeowners quality of life while living in the home.
4. Deck and Patio Additions Houselogic says that “according to a 2014 Home Trends Survey from the American Institute of Architects, our love of outdoor living spaces — especially decks and patios — is on the rise. It is certainly a less expensive way to expand living space at a low cost of $8 to $35/s.f.
5. Turning an Attic into a Bedroom This is absolutely one of my favorites. It can really appeal to your creative side. Adding skylights, painted floors and angled walls keeps the space funky for kids bedrooms or home offices. NARI Remodelers’ cost estimate: $65,000. REALTORS®’ estimated cost recovered: $40,000. Percent of value recovered from the project: 61 percent.
6. Garage Door Replacement This is especially true of front facing garages. NARI Remodelers’ cost estimate: $2,300. REALTORS®’ estimated cost recovered: $2,000. Percent of value recovered from the project: 87 percent.
Today it’s your home, tomorrow it’s your asset. The goal is to enjoy both to the maximum.