Tips for Renovating your home
Remodeling Cost vs. Resale Value in Atlanta area
Since 1996, Hanley Wood products has been providing a cost-versus-value report for the home remodeling industry and consumers alike. This year’s report, Remodeling 2011-12 Cost vs. Value Report (www.costvsvalue.com), like previous reports, is based on research data and trends using their proprietary format and, year after year, proves to be a valuable resource for anyone interested in home remodeling.
In the Atlanta-area report, you can investigate what the return on your home improvements will have on the value of your home, as well as estimates of the price range for your desired improvements. The report is broken into midrange and upscale data giving you job cost projections, resale value and cost recouped. I think it interesting to see which remodeling projects recoup the most value relative to the overall cost. It's also interesting to think of the relative values that should be considered when evaluating how much to spend on a kitchen renovation. For example, a $400,000 home should spend somewhere around 20% of that value on a new kitchen, approximately $80,000. It’s been my experience that this is a good percentage to work with and would likely keep the project in-between the report’s estimated cost for a midrange remodel and an upscale remodeled kitchen.
HOME REMODELING EXAMPLES FROM THE REPORT
According to the Cost vs. Value Report for Atlanta, a midrange major kitchen remodel might be expected to cost around $56K with a resale value of about $42K, nearly a 75% return on investment. The midrange major kitchen remodel job cost is about $1K lower than the national average, but returns over $4K more in resale value.
However, a sunroom addition might cost almost $73K and return about $39K in resale value, about a 53% return. While the job cost is nearly $2K less than the national average, and returns about $4.5K more, a consumer, equipped with the knowledge from this report, and debating either a major kitchen remodel or a sunroom addition, might choose to opt for the kitchen remodel, especially if it was anticipated that a move might occur in the next 1-3 years.
Here’s another example: an upscale home needs to have siding replaced. While the job costs for foam-backed vinyl siding and fiber-cement siding run roughly the same - about $13.5K - the resale value returned is significantly different. Which one wins? According to the Cost vs. Value Report for Atlanta, the fiber-cement (e.g., HardiPlank) siding recoups over 89% at resale vs. only about 66% for the foam-backed vinyl.
To see the complete Atlanta report, download your copy at www.costvsvalue.com.
With 16+ years of guiding homeowners through the myriad decisions revolving around remodeling projects, John Rogers Renovations guides you expertly through the process and arms you with the information you need to make a wise decision about your home remodeling needs and wants. If you have any questions about the potential cost for a project, please feel free to contact John Rogers Renovations for a no-cost consultation.