Wednesday, December 19, 2007

Remodeling Cost vs. Value

Each year, the National Association of Realtors publishes a Remodeling Cost vs. Value report in Realtor(R) Magazine, adapted from Remodeling Magazine. It sets out certain job parameters, costs out the job, calculates the added resale value, and assigns a percentage as 'Cost Recouped' for each one. Information is broken into geographic areas. Here's information for the East North Central area, which includes Michigan, Ohio, Indiana, Wisconsin and Illinois.

The top 'Remodel' winner is the minor kitchen project. This job was for a 200 sq ft kitchen with 30 linear ft of counter and cabinets. It left cabinets in place but replaced fronts with raised-panel wood doors and drawers and hardware; replaced wall oven and cooktop with more energy efficient models, replaced laminate counters, installed a mid-price sink and faucet, repainted trim, added wall covering and replaced resilient flooring. That came to a total job cost of $21,863 with a resale value assigned at $16,010 and a recouped cost of 73.2 percent.

The top 'Addition' job was a 16 x 20 wood deck with pressure treated joists, 4 x 4 posts anchored to concrete piers, and pressure treated decking layed out in a simple linear pattern. It did include a built-in bench and planter made of decking material, and included three steps to grade as well as railings and balusters. This job cost was $10,516, the resale value was $7,540 and the recouped cost calcuated at 71.7 percent.

You can see all of the data at http://www.costvsvalue.com/ if you wish.

Within a given geographic area there are price variances. Costs of material, labor, permit fees and local taxes all play a part in the final figure. It's always a good idea to have your job parameters in writing and ask at least three contractors for quotes. Many local builder associations have members that specialize in remodeling, and it's always a good idea to check with the Better Business Bureau (BBB) to see if there are unresolved complaints with a given provider.

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