Thursday, November 30, 2006

Remodeling? Review the 2006 Cost vs. Value Report First!

Many people wonder about their return on investment in a home remodeling project. The National Association of Realtors, through an agreement with Remodeling Magazine has published the 2006 Cost vs. Value report. In it, they detail the average cost for typical remodel jobs, the average resale value of the remodel and the percentage of cost recouped from a remodel project. The list details over 60 U.S. markets, but for purposes of this blog, we'll discuss the numbers from the closest metro area, Cleveland, OH.

Here's a breakdown of the return on investment that homeowners could expect from typical remodels:

  1. Kitchen Remodel - 54.9%
  2. Bathroom Remodel - 59.8%
  3. Home Office Remodel - 50.1%
  4. Basement Remodel - 59.9%

Should you be worried by the lower recoup values in this year's report. Not necessarily so, says Kemit Baker, Director of remodeling Futures Program at Harvard University. Even with the lower recoup, he believes that "When you consider its value at resale, a home improvement project costs only 20 to 25 cents on the dollar. The other 75 to 80 cents spent on a project go directly back into the home through increased value, not to mention increased homeowner enjoyment".

The good news is that replacement values for key home components continue to lead returns in the cost recoupment area. Here's a breakdown of the typical replacement projects and the cost recouped for the Cleveland, OH area:

Midrange replacements:

  1. Roofing - 60.2%
  2. Vinyl Siding - 81.2%
  3. Wood Windows - 78.3%
  4. Vinyl Windows - 81.4%

Upscale replacements:

  1. Roofing - 60.2%
  2. Fiber cement siding - 79.1%
  3. Foam backed vinyl siding - 73.4%
  4. Wood Windows - 72.7%
  5. Vinyl Windows - 72.7%

For further details on this report or to print out PDF reports for your area (at a cost of $9.95) go to: www.costvsvalue.com

Friday, November 03, 2006

Real Estate Coaching Podcast for November 2nd, 2006 - An Open House System That Works!

Tired of holding an open house and having no one stop by? Consider implementing the easy system described in this week's coaching podcast!

To listen to the podcast, simply click on the play button below:

Real Estate Coaching #2