Thinking of Remodeling?
Are you thinking about improving your home with a remodeling project that you can’t wait to get started? Maybe you are ready to finally redo that bathroom or kitchen. Or, maybe you’re finally ready to add on that primary bedroom ensuite you’ve been dreaming about.
Especially in today’s changing market, many are asking me, “If I do X, will I get my money back when I sell? How do I avoid over-improving my home?” The first step is to call me (especially if you’re remodeling with an intent to sell soon), and the second is to consult the 2022 Remodeling Cost vs. Value Report.
This annual report is a resource you don’t want to skip. It lists the average cost of 22 remodeling projects plus their average “resale value” and “cost recouped” for each one.
I love this report because it provides the average cost of doing a specific project based on your location. So, not only does it help you decide if it’s “worth it” to do the project, it also gives you a baseline idea of what something might cost.
Keep in mind, the information in this report is just the first step in determining the resale value of any remodeling project. Whenever you plan on improving or remodeling your home, don’t forget that I am a resource too!
I can help guide you on what project or projects have the best return on investment in your neighborhood and for your particular home when it comes time to sell.
“Cost vs Value” Examined
The “Cost vs Value Report” not only gives the national averages for each of the 22 projects, it also provides the average job cost, resale value, and cost recouped for our region. You can even look up specifics for the Boulder and Fort Collins areas.
The information can be helpful to see if it’s worth spending more in order to recoup more for certain projects — such as siding replacement with fiber-cement material compared to vinyl material. Or, an upscale versus a mid-range cost recoup for a major kitchen remodel.
Other highlighted projects include deck additions, roofing replacements, bathroom remodels, bathroom additions, window replacements, master suite additions, using manufactured stone veneer, and installing a grand entrance door.
For example, with a smaller project like replacing a garage door, it shows you could recoup around 93.1% of the $4,000 cost when you sell. Sounds like a worthy project, especially if you get to enjoy your new door for a while!
And if you’re thinking of something bigger in scale such as replacing windows, you can expect to recoup 67.5% of the $24,182 cost of wood windows compared to 68.9% for the $20,257 cost for vinyl windows.
Visit the link www.costvsvalue.com for details on the 22 projects. It’s easy to use — step 1 is the national data, step 2 pick your region for that data, and to go further to step 3 for data on a particular city and step 4 for your particular zip code. You will need to register to use the site, but use is free.
What the Numbers Mean
It’s important to take into account that this report provides a great snapshot of the national housing market and what you can expect overall with remodeling projects vs the value you will recoup when you sell.
However, when you get closer to the city and zip code numbers in this report, consider them more “guesstimates” — which can still be helpful. That’s because there are many factors that can impact your individual project’s costs and its actual cost recovered.
Your return on investment or resale value on your particular project can depend on what materials you choose, the size, and scope of your project, the condition of your home and its location, how the remodel is perceived by potential buyers, the current real estate market when you sell, and other cost factors such as supply-chain issues for materials and demand for skilled labor.
I don’t suggest you undertake remodeling projects you think will bring more money at the time of sale. While it can be very lucrative to do so, you need a plan to ensure you spend money on the places where you will get the best return and that will help sell your home the fastest. If your home is dated, let’s talk before you dig into anything. What you think is important may not be important to today’s buyers. One of the things that can help improve sale price is to sell quickly rather than allowing a home to sit on the market. This makes investing in the right projects critical.
How I Can Help
The “Cost vs Value Report” provides an excellent and informative overview of remodeling projects, especially at the national and regional level and for comparing different U.S. markets.
But remember you also can reach out to me at any time as a homeowner with questions or concerns, not only when it comes time to buy or sell a home. I can be a resource for you on many things— like remodeling projects — when it comes to real estate and your home!
Contact me if you plan to remodel and we can go over project costs and resale value at the local level and for your own particular home.
I understand the pros and cons of certain remodeling projects in our local market and know which ones are worth doing, what to expect cost-wise for the project you are thinking about, and which projects will bring you the most bang for your buck when it comes time to sell your home.
I'm Libby Earthman. I specialize in helping first-time buyers and sellers pursue financial security on the Northern Front Range.
825 Delaware Ave, Suite 208
Longmont, CO 80501