Greetings from cold but mosquito-free Hayward, WI!
For most of my life it seems that I have been involved in remodeling and many times I have wondered if it is really worth it. If you are considering a rehab job, here are some thoughts and statistics from the latest National Assn. of Realtors “Remodeling’s 2008-2009 Cost vs. Value Report”.
On average, you can expect to recoup about 67% of your investment in 30 different home improvement projects. The projects range from kitchen and bathroom remodeling to the addition of a master suite, a garage or build-out of your attic. At the height of the housing boom in 2005 (yes, just 3+ years ago) home owners received an average payback of about 87% on these same projects. Still 67% is a pretty high rate when you consider our weak housing market. And remember that this is a national average; our area would tend to be higher because of lower labor costs.
Guess what the top project paybacks are.......ok, I won’t keep you in suspense. Exterior projects like siding, decks and windows (see my friends at Glassworks---an unpaid ad) lead the way for recovery on dollars spent. And why not, all of the above provide great curb appeal. According to the report only kitchen re-dos can compare to the exterior projects.
We do have to take into consideration that the cost recouped for any project depends on a variety of factors including the look of the finished project, condition of the rest of the house and the value of other homes in the neighborhood.
From my perspective, renovations do more than just give us good payback when we sell. Keep in mind you get to live in and enjoy the renovation; a buyer has less to do when you sell which also results in less negotiation over imperfections. Less stress for buyers usually means more money for the seller.
For most of my life it seems that I have been involved in remodeling and many times I have wondered if it is really worth it. If you are considering a rehab job, here are some thoughts and statistics from the latest National Assn. of Realtors “Remodeling’s 2008-2009 Cost vs. Value Report”.
On average, you can expect to recoup about 67% of your investment in 30 different home improvement projects. The projects range from kitchen and bathroom remodeling to the addition of a master suite, a garage or build-out of your attic. At the height of the housing boom in 2005 (yes, just 3+ years ago) home owners received an average payback of about 87% on these same projects. Still 67% is a pretty high rate when you consider our weak housing market. And remember that this is a national average; our area would tend to be higher because of lower labor costs.
Guess what the top project paybacks are.......ok, I won’t keep you in suspense. Exterior projects like siding, decks and windows (see my friends at Glassworks---an unpaid ad) lead the way for recovery on dollars spent. And why not, all of the above provide great curb appeal. According to the report only kitchen re-dos can compare to the exterior projects.
We do have to take into consideration that the cost recouped for any project depends on a variety of factors including the look of the finished project, condition of the rest of the house and the value of other homes in the neighborhood.
From my perspective, renovations do more than just give us good payback when we sell. Keep in mind you get to live in and enjoy the renovation; a buyer has less to do when you sell which also results in less negotiation over imperfections. Less stress for buyers usually means more money for the seller.
Remember my blog back a couple of weeks where I talked about growing up in a farm home….take a look at the picture attached taken over Thanksgiving vacation. On the left is my brother, Dennis, at our old farm home. If you think the outside looks bad, you should see the inside! No amount of money could rehab this place! We didn’t leave it this way but you wouldn’t want all the boring details.
The long and short is that despite the weak housing market remodeling dollars spent is still a solid investment.
Come on up and see us; there is ice on the small lakes and just starting on the big lakes; word has it that fishing is very good. Have a great weekend and enjoy!
Life is a Gift…Live It!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15617 Railroad St.
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
http://www.garynathan.com/
http://www.haywardwaterfront.com/
Come on up and see us; there is ice on the small lakes and just starting on the big lakes; word has it that fishing is very good. Have a great weekend and enjoy!
Life is a Gift…Live It!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15617 Railroad St.
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
http://www.garynathan.com/
http://www.haywardwaterfront.com/
