Remodeling Magazine has published their latest cost comparisons of 35 home-improvement projects, and the additional value created.
The data is broken down into “Midrange” and “Upscale” projects, and has the percentages of how much of your investment you can expect to recoup.
Projects include Home Office Remodel (recoups 54.4% of investment), Major Kitchen Remodel (77.0%), Vinyl Window Replacment (80.3%), Garage Door Replacement (96.4%), and Entry Door Replacement (112.1%).
Here is the link below:
http://www.remodeling.hw.net/2010/costvsvalue/division/pacific/city/san-diego–ca.aspx
Do house flippers ever read any of this stuff?
aside from redoing the entrance, none of these
ever get much return.
What about Landscaping?
Exactly. If you are going to sell, fix broken stuff, but that’s it. Upgrades basically never pay off in an increased sales price.
Thoughts, in no random order.
1) Remodeling Magazine is geared towards remodeling pros. Do you believe everything out of the mouths of the oracles at the NAR?
2) Anyone who has followed Jim’s blog for any time knows that the buyer has mostly made a decision before they get inside the front door. Yes, landscaping matters. Curb appeal always matters. But be smart about your choices. A house that looks well maintained from the street will have a buyer thinking it most likely is well maintained all the way through. It matters.
3) Those average costs for mid-range blew me away. Average maybe in higher end neighborhoods, but I don’t know how you spend $20k on a bath remodel in mid-range. I spent $10k on mine and it looks like a spa in there.
4) Don’t get me started on a “mid-range” kitchen remodel at $65k.
5) Ok, maybe you might run up those costs if need to bring in a general contractor and change your mind 23 times during the project.
6) A smart shopper who is organized enough to run their own remodel jobs, choose good quality but not excessively high end materials and can stick to a budget can do every one of those remodel jobs for about half of what the link is listing for supposed “mid-range.”
7) This is exactly the kind of stuff that scares people off from fixers and older housing stock that just needs some updating. They see an older kitchen and $65k for mid-range remodel and they walk away when it likely could have been done for $20k and been just fine.
“Aside from redoing the entrance, none of these
ever get much return.”
I guess it’s not really repair, but I wonder how (front) landscaping and exterior paint would do on a list like this. (Do flippers always paint?)
In addition to the remodel items, an older home like the one several posts ago may have systems that have to be replaced, HVAC, electrical and plumbing for example. A house from the 1960s may have lead paint, at that time a lot of galvanized sewer pipe was used which is now rusting out, the house may have aluminum wiring. So fixer upers from the 60s at least have problems with these, let alone houses from the 1920 that have knob and tube wireing, and may also have been subjected to incompetent remodeling in the past. (See Holmes on Homes for examples)
It is a lot of these hidden details that can run a projects costs way up.
That’s the thing, Lyle. When looking at older housing stock, you really have to distinguish between cosmetic needs (ugly kitchen cabinets or bad tile choices) which are relatively easy and can be updates without breaking the bank and infrastructure/building envelope needs.
Windows are frequently cited as a cosmetic improvement when they really are a critical building envelope item. Replacing old single pane windows with new, Energy Star rated windows will drastically cut heating and cooling costs, in addition to making the home quieter and reducing UV damage near windows. You really cannot evaluate HVAC until you deal with the windows.
It is too tempting to deal with only the cosmetic items and not deal with things like wiring, plumbing, insulation and other elements that are the unseen systems by which the home operates.
This book should be required reading for anyone who owns a home or is interested in buying one:
http://www.amazon.com/Mr-Fix-Introduces-Your-Home/dp/0345449878
Mr. Fix-it Introduces You to Your Home.
Re #8 I read that in some parts of the country inspections are required to get insurance on older homes. The insurance companies are looking at the systems that could cause losses, primarily electrical for fires, and plumbing for leaks. Have Ca insurance companies started doing this for houses older than say 40 years. For lead its 1978 as a magic cut off date.
Yes, I had challenges getting insured when I bought this place. Old knob & tube wiring and the box still was on a fuse system.
Insurer told me I had to replace the roof within 30 days also, although that was already in the plan and had been negotiated into the purchase. The 30 days part was kind of sucky IMHO, 60 days would have been more reasonable and there was no reason for the 30 day mandate – try moving in, getting settled and having to find a roofer with time in his schedule all at the same time.