With the start of summer approaching, you may finally have time to tackle those home improvement projects you have been wanting to do. However, prior to knocking down any walls or spending a chunk of your savings, be sure to consider the Cost vs. the Value of the project or remodel. This is especially important if you are considering selling your home within the next few years – you want to ensure that you are seeing returns on the time and money put into the home.
One helpful tool to weigh the cost vs the value of any project is this website: http://www.remodeling.hw.net/cost-vs-value/2017/
As described on their site,
This is the 30th anniversary of when we first published Cost vs. Value, and our goal remains the same: to give you and your customers 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. By dividing the project’s value into its cost, you and your customers get a sense of how much bang for the buck you’re generating as a result. For 2017, we have collected data on 29 projects in 99 markets nationwide.”
Note that some cases have highlighted two versions of a common job, such as renovating or adding a kitchen or bath. The standard version is called a mid-range project and the higher-priced version is called an upscale project. The difference between the two versions relates to the amount of work done, as well as the overall the complexity of the project. It also accounts for the use of varying quality finishes: for example, the mid-range version of a bathroom remodel accounts for a 30-by-60-inch white fiberglass tub/shower while the upscale version includes a freestanding soaker tub with high-end faucets
This report is especially valuable because it is updated annually to reflect current trends. This year the research focused on two recent popular developments: indoor/outdoor living and meeting the needs of aging and multi-family households. The 2017 Cost vs Value Report for Los Angeles County highlights both recent and long term trends that affect our specific region.
For example: in Los Angeles County, the 2017 research reported that while a mid-range bathroom remodel cost an average 67,593 it’s resale value was found to be 32,000 – meaning that only 47.3% of the cost was recouped.
A quick note: if you crunch the numbers and it looks like the monetary value is less than the cost, be sure to also factor in the intangible value of the addition or update. Some home remodels are priceless – especially if your family is planning to be in a home long-term, or if it will greatly enhance the quality of your life!
Each situation is different and deserves to be treated as such!
As always, if the Weber Accetta Group can provide a trusted vendor referral or be a resource in any way, do not hesitate to contact us!