Cost vs. Value

human-instrument-computer-77714-oThe newest Cost versus Value report has just been released. Leading in the midrange projects in Chicago are steel entry doors, garage door replacements, deck additions and stone veneer accents.

Leading upscale projects were wood window replacements, garage door replacements and siding replacement.

Unlike what television may have us believe, not all home improvements will add value to your home. In some cases, the burden of cost of updating a certain aspect of your home will be yours alone. The more unique the project, the less you may recoup. Surprisingly, typical renovations such as kitchens and bathrooms average a recoup value of ~60-70%.

Percentage of cost recouped was based on job cost as reported by industry professionals surveyed nationally with a confidence level of +/- 5.08%.

To fully comprehend the data, a homeowner must consider whether they are remodeling for their own personal needs and comfort, or as a resale project. Understanding your goals, will help define options and budget. Owners looking to remodel for their own personal needs tend to spend more. The longer they project their duration in their home, the more an owner may spend to make it “their own”.

Long term owners may face the dilemma that previous remodeling projects, materials and styles have become outdated or in some cases, a potential expense for future homebuyers who may look at niche and outdated areas as potential cost factors.

Owners should carefully consult with a professional before undertaking a remodeling project to determine best course of action, a realistic budget, desirability on the market and comparison to other homes in the area.

Sherwin L. Sucaldito, REALTOR®, GREEN, ABR, CRPM
The Institute of Luxury Home Marketing
Green REsource Council, GREEN
Accredited Buyer’s Representative , ABR
Certified Residential Property Manager, CRPM
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