Remodeling Your Home: Cost vs Value Added Series #2
It’s here – “The 2017 Cost vs. Value Report” by Remodeling Magazine! I look forward to receiving this each year and still receive the paper copy, as well as the digital version. The folks at Hanley Wood Media have been producing this report for the past 30 years. I highly recommend checking it out.
The report’s goal is to give both remodelers and consumers “an unbiased, third-party report on 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.” In the 15 years I have owned a design/build remodeling company and the over 35 years I have been in the construction industry, I have come to appreciate the fine job the folks at Remodeling Magazine do.
So, what’s the verdict based on 2016’s numbers? Things are shaping up nicely in both the housing market and the remodeling market. In a nutshell, and on average for all remodeling projects tracked, if you are selling your house within one year from the completion of a remodel, you will recoup 64.3 cents on the dollar. That amount is up a bit from last year and way up from six years ago, when we were in the heart of the Great Recession. That number may sound a little daunting if you are contemplating a project, but as I pointed out in my last post, if it is an immediate financial payback you expect on your remodeling project, you are not likely to get it.
Nonetheless, the return on investment on many major projects goes up year over year, and there are really great reasons for undertaking all sorts of projects in order to create a happier and healthier home. Stay tuned to this blog to learn more about the cost of remodeling vs. the value added to your home.