Blog :: 02-2015

2015 Remodeling Cost vs. Value - Less is More

costvsvalue20152015 Remodeling Cost vs. Value: Less Is More

Great article written by Stacey Moncrieff published by Realtor.org.
Smaller replacement projects, particularly those that enhance curb appeal, remain the most cost effective way for sellers to improve value.
JANUARY 2015 | BY STACEY MONCRIEFF
With home price gains slowing in most parts of the country, sellers will be looking for ways to get top dollar for their listing. Cleaning and staging make a big difference. But for some sellers--such as investors seeking to bring a property up to neighborhood standards before the sale--remodeling work may be the ticket.

What Is the Cost vs. Value Report?

The Remodeling Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of REALTORS® and REALTOR® Magazine, provides estimated costs for 36 midrange or upscale home-improvement projects, along with the percentage of cost that owners can expect to recoup when they sell. Projects range from a new garage door to a master suite addition.

Project costs for the 102 markets surveyed for the 2015 report were provided by RemodelMax, a publisher of estimating tools for remodelers, using Clear Estimates remodeling software. NAR members provided the expected value of the projects at resale.

To learn more and see all 36 projects broken down by region and market area, visit Remodeling at CostvsValue.com. Click here for New England numbers.

Remodeling magazine's 2015 Cost vs. Value Report, ©2015 by Hanley Wood LLC. Republication or re-dissemination of the Report is expressly prohibited without written permission of Hanley Wood, LLC. "Cost vs. Value" is a registered trademark of Hanley Wood LLC.

As the 2015 Remodeling Cost vs. Value Report makes clear, large-scale jobs aren't likely to return sellers their full cost. But there are improvements worth doing in anticipation of an upcoming sale. Some will return almost 100 percent of their cost. Others may not have as great a payback, but they can improve the market position of the property in relation to the competition. (Think about the impact of beautiful kitchen photos on online home shoppers.) In addition, several pricier projects can provide owners with a few years of enjoyment while still offering a decent payback down the road.

As a general rule:

  • Simpler, lower-cost projects tend to return greater value. The national average cost for a steel door replacement was $1,230, for example. That's the least expensive project on the list, and it ranks highest on the payback scale, returning 101.8 percent nationally on average. In fact, in 43 of the 102 markets surveyed, REALTORS® said the new door would recoup more than 100 percent of its cost. Other projects expected to top 100 percent payback in multiple markets: the midrange garage door replacement, the upscale garage door replacement, the midrange wood window replacement, and the minor kitchen remodel. Notice a pattern? With the exception of the kitchen job, they're all replacement projects. In general, replacements cost less and provide a bigger payback than remodels or additions.
  • First impressions are important. The replacements that offer the greatest payback are the ones that are most obvious to buyers when they first view a house in person or online, such as new door or garage door. Siding replacement also provides great value at resale--particularly this year's one new project, manufactured stone veneer,  which is expected to recoup 92.2 percent of its cost nationally on average.
  • Kitchens still offer the most remodeling bang for the buck. The only remodeling job breaking into the top 10 in terms of payback is the minor kitchen remodel with a national average cost of $19,226 and a national average payback of 79.3 percent.

Top 5 projects nationally in terms of cost recouped:

1. Entry door replacement (101.8%) 2. Manufactured stone veneer (92.2%) 3. Garage door replacement--mid-range (88.5%) 4. Siding replacement, fiber cement (84.3%) 5. Garage door replacement--upscale (82.5%)

  • Expect bigger payoffs in the West. In addition to reporting national averages, Remodeling magazine breaks down Cost vs. Value data by Census region. In the Pacific region--which includes Alaska, California, Hawaii, Oregon, and Washington--six projects are expected to top 100 percent payback. The nearest competitor is the East South Central region--Alabama, Kentucky, Mississippi, and Tennessee--where two projects are expected to top 100 percent payback.

Just how much sellers can expect to recoup from home improvements depends on the job and the region of the country they live in. There are also factors that vary from house to house and sale to sale, such as what updates are typical for the neighborhood, the quality of the work, and how important the improvement is to a particular buyer. And while you can't apply this data directly to any specific house or neighborhood, you can use the Cost vs. Value Report as a starting point in discussions with buyers and sellers about the cost and value of remodeling.

2015 Remodeling Cost vs. Value - Less is More

costvsvalue20152015 Remodeling Cost vs. Value: Less Is More

Great article written by Stacey Moncrieff published by Realtor.org.
Smaller replacement projects, particularly those that enhance curb appeal, remain the most cost effective way for sellers to improve value.
JANUARY 2015 | BY STACEY MONCRIEFF
With home price gains slowing in most parts of the country, sellers will be looking for ways to get top dollar for their listing. Cleaning and staging make a big difference. But for some sellers--such as investors seeking to bring a property up to neighborhood standards before the sale--remodeling work may be the ticket.

What Is the Cost vs. Value Report?

The Remodeling Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of REALTORS® and REALTOR® Magazine, provides estimated costs for 36 midrange or upscale home-improvement projects, along with the percentage of cost that owners can expect to recoup when they sell. Projects range from a new garage door to a master suite addition.

Project costs for the 102 markets surveyed for the 2015 report were provided by RemodelMax, a publisher of estimating tools for remodelers, using Clear Estimates remodeling software. NAR members provided the expected value of the projects at resale.

To learn more and see all 36 projects broken down by region and market area, visit Remodeling at CostvsValue.com. Click here for New England numbers.

Remodeling magazine's 2015 Cost vs. Value Report, ©2015 by Hanley Wood LLC. Republication or re-dissemination of the Report is expressly prohibited without written permission of Hanley Wood, LLC. "Cost vs. Value" is a registered trademark of Hanley Wood LLC.

As the 2015 Remodeling Cost vs. Value Report makes clear, large-scale jobs aren't likely to return sellers their full cost. But there are improvements worth doing in anticipation of an upcoming sale. Some will return almost 100 percent of their cost. Others may not have as great a payback, but they can improve the market position of the property in relation to the competition. (Think about the impact of beautiful kitchen photos on online home shoppers.) In addition, several pricier projects can provide owners with a few years of enjoyment while still offering a decent payback down the road.

As a general rule:

  • Simpler, lower-cost projects tend to return greater value. The national average cost for a steel door replacement was $1,230, for example. That's the least expensive project on the list, and it ranks highest on the payback scale, returning 101.8 percent nationally on average. In fact, in 43 of the 102 markets surveyed, REALTORS® said the new door would recoup more than 100 percent of its cost. Other projects expected to top 100 percent payback in multiple markets: the midrange garage door replacement, the upscale garage door replacement, the midrange wood window replacement, and the minor kitchen remodel. Notice a pattern? With the exception of the kitchen job, they're all replacement projects. In general, replacements cost less and provide a bigger payback than remodels or additions.
  • First impressions are important. The replacements that offer the greatest payback are the ones that are most obvious to buyers when they first view a house in person or online, such as new door or garage door. Siding replacement also provides great value at resale--particularly this year's one new project, manufactured stone veneer,  which is expected to recoup 92.2 percent of its cost nationally on average.
  • Kitchens still offer the most remodeling bang for the buck. The only remodeling job breaking into the top 10 in terms of payback is the minor kitchen remodel with a national average cost of $19,226 and a national average payback of 79.3 percent.

Top 5 projects nationally in terms of cost recouped:

1. Entry door replacement (101.8%) 2. Manufactured stone veneer (92.2%) 3. Garage door replacement--mid-range (88.5%) 4. Siding replacement, fiber cement (84.3%) 5. Garage door replacement--upscale (82.5%)

  • Expect bigger payoffs in the West. In addition to reporting national averages, Remodeling magazine breaks down Cost vs. Value data by Census region. In the Pacific region--which includes Alaska, California, Hawaii, Oregon, and Washington--six projects are expected to top 100 percent payback. The nearest competitor is the East South Central region--Alabama, Kentucky, Mississippi, and Tennessee--where two projects are expected to top 100 percent payback.

Just how much sellers can expect to recoup from home improvements depends on the job and the region of the country they live in. There are also factors that vary from house to house and sale to sale, such as what updates are typical for the neighborhood, the quality of the work, and how important the improvement is to a particular buyer. And while you can't apply this data directly to any specific house or neighborhood, you can use the Cost vs. Value Report as a starting point in discussions with buyers and sellers about the cost and value of remodeling.

From Dust to Cash - Downpayment Money!

Short on down payment money and thinking about buying a house? Think outside the (jewelry) box! 

Do you have a 'retired' wedding or engagement ring? Or how about an old coin collection, motorcycle, boat, snowmobile or antique car? Forgotten gems and dusty toys may be considered assets provided they are saleable. A little effort can turn items like these into cash money, perfect for that new home that makes your heart go pitter-patter.

There are a few rules to keep in mind during the process because making a large cash deposit without a paper trail is a no-no and might not fly with the lenders.

Make copies of titles or proof of ownership first.

Always create a bill of sale.

Show proof of receiving the money for the item.

Deposit the full amount and keep the deposit slip from the bank.

Dust off your goods and get started!

We have a group of trusted lenders who are happy to answer all your financing questions. It can be complicated and we want you to fall in love with a new home and keep the process nice and sweet. Click here for our list of preferred lenders.

From Dust to Cash - Downpayment Money!

Short on down payment money and thinking about buying a house? Think outside the (jewelry) box! 

Do you have a 'retired' wedding or engagement ring? Or how about an old coin collection, motorcycle, boat, snowmobile or antique car? Forgotten gems and dusty toys may be considered assets provided they are saleable. A little effort can turn items like these into cash money, perfect for that new home that makes your heart go pitter-patter.

There are a few rules to keep in mind during the process because making a large cash deposit without a paper trail is a no-no and might not fly with the lenders.

Make copies of titles or proof of ownership first.

Always create a bill of sale.

Show proof of receiving the money for the item.

Deposit the full amount and keep the deposit slip from the bank.

Dust off your goods and get started!

We have a group of trusted lenders who are happy to answer all your financing questions. It can be complicated and we want you to fall in love with a new home and keep the process nice and sweet. Click here for our list of preferred lenders.

Home Sales in Topsfield, MA - January 2015

Single Family
18 Summer Street  Topsfield, MA 3 1.0 $289,900 $280,000
14 Boxford Road  Topsfield, MA 3 2.0 $425,000 $425,000
110 Salem Rd  Topsfield, MA 3 3.0 $519,900 $501,500
79 Alderbrook Drive  Topsfield, MA 4 3.0 $499,900 $505,000
27 East Street  Topsfield, MA 4 3.0 $524,900 $515,250
Condominium
33 English Commons 33 Topsfield, MA 2 2+2 $873,000 $900,822

 

This representation is based in whole or in part on data supplied by our MLS partners. These entities neither guarantee nor are responsible for data accuracy. Data maintained by MLS may not reflect all real estate activity in the market.

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Home Sales in Topsfield, MA - January 2015

Single Family
18 Summer Street  Topsfield, MA 3 1.0 $289,900 $280,000
14 Boxford Road  Topsfield, MA 3 2.0 $425,000 $425,000
110 Salem Rd  Topsfield, MA 3 3.0 $519,900 $501,500
79 Alderbrook Drive  Topsfield, MA 4 3.0 $499,900 $505,000
27 East Street  Topsfield, MA 4 3.0 $524,900 $515,250
Condominium
33 English Commons 33 Topsfield, MA 2 2+2 $873,000 $900,822

 

This representation is based in whole or in part on data supplied by our MLS partners. These entities neither guarantee nor are responsible for data accuracy. Data maintained by MLS may not reflect all real estate activity in the market.

Comments

  1. No comments. Be the first to comment.

Home Sales in Beverly, MA - January 2015

Address #BR #BA List $ Sale $
Single Family
6 Story Ave  Beverly, MA 3 1.0 $299,900 $299,700
13 Phillips St  Beverly, MA 3 1.5 $299,974 $307,500
7 Longwood Ave  Beverly, MA 3 1.5 $377,000 $338,100
13 Crosby Avenue  Beverly, MA 3 2.0 $344,000 $338,500
9 Scenna Road  Beverly, MA 3 1.5 $389,900 $372,000
31 Longview Drive  Beverly, MA 4 2.0 $399,900 $397,000
6 Cornell Rd  Beverly, MA 5 2.0 $424,900 $410,000
253 ESSEX STREET  Beverly, MA 3 2+2 $459,900 $451,000
36 Middlebury Lane  Beverly, MA 4 2.5 $519,000 $507,000
54 Boyles St  Beverly, MA 3 1.0 $595,000 $590,000
59 Middlebury Ln  Beverly, MA 4 3.5 $604,000 $595,000
26 Juniper Street  Beverly, MA 5 5.5 $699,000 $600,000
5 Waldemar Ave  Beverly, MA 3 2.5 $729,900 $630,000
121 Valley Street  Beverly, MA 5 4.5 $925,000 $787,500
Multi-Family
154 Hale Street  Beverly, MA 4 2.0 $419,900 $382,500
87 Hale  Beverly, MA 5 4.0 $519,000 $460,000
Land
232 Essex Street  Beverly, MA 0 . $1,500,000 $770,000
Condominium
11 Prospect St 1 Beverly, MA 2 1.0 $158,900 $155,000
103 Elliott Street 12 Beverly, MA 1 1.0 $184,900 $185,000
4 Duck Pond Rd 224 Beverly, MA 2 2.0 $195,000 $190,000
38 School St 3 Beverly, MA 2 1.0 $215,000 $210,000
9 Sturtevant 1 Beverly, MA 4 1.5 $259,000 $285,000
6 OBER STREET 2 Beverly, MA 2 2.0 $495,000 $495,500

 

This representation is based in whole or in part on data supplied by our MLS partners. These entities neither guarantee nor are responsible for data accuracy. Data maintained by MLS may not reflect all real estate activity in the market.

Comments

  1. No comments. Be the first to comment.

Home Sales in Beverly, MA - January 2015

Address #BR #BA List $ Sale $
Single Family
6 Story Ave  Beverly, MA 3 1.0 $299,900 $299,700
13 Phillips St  Beverly, MA 3 1.5 $299,974 $307,500
7 Longwood Ave  Beverly, MA 3 1.5 $377,000 $338,100
13 Crosby Avenue  Beverly, MA 3 2.0 $344,000 $338,500
9 Scenna Road  Beverly, MA 3 1.5 $389,900 $372,000
31 Longview Drive  Beverly, MA 4 2.0 $399,900 $397,000
6 Cornell Rd  Beverly, MA 5 2.0 $424,900 $410,000
253 ESSEX STREET  Beverly, MA 3 2+2 $459,900 $451,000
36 Middlebury Lane  Beverly, MA 4 2.5 $519,000 $507,000
54 Boyles St  Beverly, MA 3 1.0 $595,000 $590,000
59 Middlebury Ln  Beverly, MA 4 3.5 $604,000 $595,000
26 Juniper Street  Beverly, MA 5 5.5 $699,000 $600,000
5 Waldemar Ave  Beverly, MA 3 2.5 $729,900 $630,000
121 Valley Street  Beverly, MA 5 4.5 $925,000 $787,500
Multi-Family
154 Hale Street  Beverly, MA 4 2.0 $419,900 $382,500
87 Hale  Beverly, MA 5 4.0 $519,000 $460,000
Land
232 Essex Street  Beverly, MA 0 . $1,500,000 $770,000
Condominium
11 Prospect St 1 Beverly, MA 2 1.0 $158,900 $155,000
103 Elliott Street 12 Beverly, MA 1 1.0 $184,900 $185,000
4 Duck Pond Rd 224 Beverly, MA 2 2.0 $195,000 $190,000
38 School St 3 Beverly, MA 2 1.0 $215,000 $210,000
9 Sturtevant 1 Beverly, MA 4 1.5 $259,000 $285,000
6 OBER STREET 2 Beverly, MA 2 2.0 $495,000 $495,500

 

This representation is based in whole or in part on data supplied by our MLS partners. These entities neither guarantee nor are responsible for data accuracy. Data maintained by MLS may not reflect all real estate activity in the market.

Comments

  1. No comments. Be the first to comment.

Home Sales in Ipswich, MA - January 2015

Single Family
5 Chattanooga Road  Ipswich, MA 2 1.5 $339,000 $324,500
38 Broadway Ave  Ipswich, MA 3 2.5 $439,900 $401,000
429 Linebrook Rd.  Ipswich, MA 3 2.5 $579,900 $550,000
94 Old Right Rd  Ipswich, MA 4 3.0 $775,000 $730,000
11 Capeview Road  Ipswich, MA 3 2.0 $754,900 $730,000
Condominium
400 Colonial Dr 57 Ipswich, MA 2 2.5 $239,900 $235,000

 

This representation is based in whole or in part on data supplied by our MLS partners. These entities neither guarantee nor are responsible for data accuracy. Data maintained by MLS may not reflect all real estate activity in the market.

Comments

  1. No comments. Be the first to comment.

Home Sales in Ipswich, MA - January 2015

Single Family
5 Chattanooga Road  Ipswich, MA 2 1.5 $339,000 $324,500
38 Broadway Ave  Ipswich, MA 3 2.5 $439,900 $401,000
429 Linebrook Rd.  Ipswich, MA 3 2.5 $579,900 $550,000
94 Old Right Rd  Ipswich, MA 4 3.0 $775,000 $730,000
11 Capeview Road  Ipswich, MA 3 2.0 $754,900 $730,000
Condominium
400 Colonial Dr 57 Ipswich, MA 2 2.5 $239,900 $235,000

 

This representation is based in whole or in part on data supplied by our MLS partners. These entities neither guarantee nor are responsible for data accuracy. Data maintained by MLS may not reflect all real estate activity in the market.

Comments

  1. No comments. Be the first to comment.