12 Remodeling Projects that Add the Most Value to Your Home

15 02 2008

 

2007 Cost vs. Value Report

I’ve been getting calls lately from multiple clients that are planning to sell in the near future and want to know which remodeling projects produce the best returns upon resale.

I love talking with these clients because they have a good grasp of current market conditions and understand the ingredients for a favorable sale, namely a competitive price and desirable condition.

That being said, in their pursuit of the latter ingredient, they don’t want to throw money at a remodeling project that will yield little or no return. So where should they start?

Every year, Hanley Wood, LLC. produces the Remodeling Cost vs. Value Report. The report surveys the entire U.S. by region and then by major markets within each region. Data taken from Dallas and San Antonio, although not entirely representative of the Austin market, will help sellers decide which projects are producing the best returns.

Here’s a look are the top projects:

Cost vs. Value for Texas Region

It’s no surprise that buyers are still seeking out updated kitchens and baths. But Mr. Seller, before you run to the garage, strap on the tool belt and reach for the sledge hammer, please take some time to consider the following.

“In a typical real estate transaction, the cost recovered for a given remodeling project depends on a variety of unpredictable factors, many of which are more important than the construction cost. These factors include the condition of the rest of the house, the value of similar homes nearby, and the rate at which property values are changing in the surrounding area. A home’s urban, suburban, or rural setting also affects its value, as does the availability and cost of new and existing homes in the immediate vicinity.

Where resale value is a major factor in a homeowner’s decision to remodel, the best course of action is to consult with a local remodeler about construction cost, and ask an experienced Realtor about home prices [and buyer expectations] in the neighborhood.”  

When you’re ready to find out what buyers are looking for in your neighborhood, drop us a line.

© 2007 Hanley Wood, LLC. Reproduced by permission. Complete city data from the Remodeling 2007 Cost vs. Value Report can be downloaded for free at costvalue.remodelingmagazine.com.

The data taken above are averages aggregated for 2007 and do not guarantee specific future returns.

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3 responses

16 02 2008
jgroves

I just came across a useful and free remodeling cost estimator. Give it a shot… http://www.homeremodelestimator.com

22 02 2008
North Georgia Real Estate

Some great tips on remodeling and selling of a home. Consult a realtor for comps in the area. It they give you the all clear and how much you can invest then use this great chart as a key for investment in which project. Follow that up with severeal bids on the remodel. Don’t forget to check out the contractor with the BBB and visit some of there previous job sites.

Good luck with your renovation and may it see a good profit when you sell!

26 02 2008
Lake Blue Ridge Property

This is a very useful chart. Weekend warriors DIY need to consider this when tackling projects in the home.

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