So you’ve been cooped up all winter watching HGTV and those other home and garden shows. Dreams of updated kitchens and bathrooms keep you up at night and you can’t wait to start on projects in your own home. But before you jump into a major home remodeling project it is important to consider your motivation for remodeling. If you are trying to make updates to the home you expect to spend several more years living in, go right ahead and make your dreams come true. But if you are updating your home to get ready to sell this spring or summer, stop and consider what projects will get you the biggest return on your investment. A great tool for determining what projects will make your home more marketable and increase the value of your home is the Remodeling 2015 Cost vs. Value Report.
What exactly is the Remodeling 2015 Cost vs. Value Report and how can you use the data as you plan your remodeling projects this Spring? The Cost vs. Value Report “compares changes in job costs with Realtors’ perceptions of what those jobs bring to a home’s price at resale.” In other words, how much should you expect in return for the replacement or remodeling project you undertake.
As a consumer you can visit www.costvsvalue.com and do a specific search on the Albuquerque area to find out what projects you might want to consider. When reading the report a “cost recouped” percentage of more than 100% indicates that the project cost “paid back the investment in the form of a better home resale price”. It is important to note that none of the projects listed in the 2015 report for Albuquerque provide a return greater than the actual cost of the project. For example as reported in the Remodeling 2015 Cost vs. Value Report, some of projects with the highest return included upscale garage door replacement (86.6%); and midrange improvements such as steel entry door replacement (85.4%), and stone veneer accent (83.2%) and wood window replacement (81.5%).
Some other thoughts to consider, in a recent Core Logic report it was noted that the increasing home inventory is increasingly “non-desirable” to today’s buyers due to “housing obsolescence – properties that are no longer desirable because their characteristics do not match what buyers are looking for in a home.” So when evaluating what projects to tackle this Spring take a hard and honest look at your home. Put aside the emotional connection that makes it “home” and look at it as an asset. Go visit a model home in a nearby new home neighborhood. Builders spend a fortune keeping up with home buying trends to ensure that their model homes appeal to current buyer demands. Now take a look at the 2015 Cost vs. Value Report and decide which projects you think will get you the best return, keeping in mind that simple replacement jobs usually generate a better return than the bigger remodeling projects. For a professional evaluation, Deanna can help make suggestions to update your home and find the right professionals to help.
©2015 Hanley Wood, LLC. Complete data from the Remodeling 2015 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.