Cost vs Value: Are You Remodeling Wisely?

We’ve talked about Remodeling Magazine’s awesome Cost versus Value report that they issue every year, but this year deserves some attention because for the first time in half a dozen years years, “the overall average cost-value ratio has improved, reaching 60.6%. This is 2.9 points better than the 2011–12 number, which hit a low of 57.7% (the lowest point since at least 2001), and is more than a half-point better than the 60.0% ratio from two years ago.”

One of the great things the report does is break down the data by region. The closest we can get here in Aberdeen is Fargo, ND or Sioux Falls.

It’s not surprising but you still have to chuckle that those projects where the most money is recouped revolve around insulating homeowners against bad weather or allowing them to enjoy the GOOD weather. These include upgrading your front door, replacing your windows and adding a wood deck.

Aberdeen remodelers take note! Adding a master suite, a family room, even a garage, have a low cost versus value rating. Spend your precious remodeling dollars wisely.

Adding a sunroom, a bathroom or remodeling an office rank among the lowest.

Here’s the link directly to the Fargo, ND data.

I’ve been in construction full or part time for most of my adult life. I’m always available as a sounding board if you’re considering a remodeling project, especially if you have selling your home in view.

Ring in the new Year by Adding Value to Your Home

Good news from Remodeling.com at the publication of 2013’s Cost versus Value Report (link here).

“After six years without any sign of improvement, REMODELING’s 2013 Cost vs. Value Report shows an overall cost-value ratio increase of 2.9% over the 2011-2012 number. This reflects rises in the cost-recouped percentages for all 35 home improvement projects tracked by the report, with replacement projects leading the way with the biggest gains.”

If you haven’t heard of the cost versus value report, it’s an excellent way to help you make a decision about home improvements. It weighs the cost of a project (roof, siding, bathroom remodel, that kind of thing) over and against the return on your investment when you sell.

When it comes to overall value, some projects give you a lot more bang for your buck.

“This year’s Remodeling Cost vs. Value Report shows the value of putting your home’s best façade forward, so to speak,” said National Association of REALTORS® President Moe Veissi. “Inexpensive exterior replacement projects are not only crucial to a home’s regular upkeep, but are also expected to recoup close to 70 percent of costs. Specific exterior projects such as siding, window and door replacements are part of regular home maintenance, so many homeowners are already undertaking them. These projects also do not require expensive materials and they have the added bonus of instantly adding curb appeal.”

Here is the link for those reports that our region falls in (Aberdeen, SD), with Fargo ND being the closest market and Sioux Falls, SD being the closest in state.