Evaluating Remodeling Cost vs Value
Does it Pay to Remodel Your Home in Richardson, TX?
Should you spend money remodeling your home or not? There are several considerations when making that decision–one being remodeling cost vs value. However, the most important and first question to ask yourself is, how long do you plan to live in your home after the remodel?
Homeowners who plan to live in their home for as long as possible have based their remodeling decision on lifestyle and the impact on their daily life …so resale is never an issue. Other homeowners carefully evaluate where they live….they may love the location of their home and wouldn’t make a change. Remodeling your home is about making your home comfortable for your lifestyle first and foremost. For homeowners who fall into this category, no matter what they hear, remodeling their home is clearly the right decision. On the other hand, homeowners who do not plan on living in their home a lifetime or past 5 years look for data that tells them remodeling cost vs value which is solid data to consider when embarking on a remodeling project. Each year a report is published by Remodeling Magazine
As compiled here in the Dallas area, the cost of a minor kitchen remodel mid-range can be recouped 84.5% in the Richardson, TX market. The cost of a major kitchen remodel mid-range can be recouped 57.4%. Bathroom remodels and Universal Design bathroom remodels mid-range can be recouped 69.5%. Refer to the full report at the above referenced website for upscale evaluations. The report goes into great detail for all areas of home improvement.
According to the report, Mother Nature and Uncle Sam are having their say in the remodeling business. This year there has been a slight decline in the average payback for 20 common professional remodeling projects. That’s mainly because the cost of doing those projects rose for all 20. Keep in mind that Richardson, TX has been fortunate in that our property values have been on the rise due to the demand for our outstanding real estate market making the higher costs less of an issue.
On the value side, if you look at the report nationally you will note that high-tech areas rule. For example, real estate professionals in Silicon Valley rated 17 of the 20 projects would likely generate more in resale value than project cost if the home was sold within a year. Carefully watch the Richardson, TX (Dallas area market) as we continue to have major corporations relocate to the Dallas-Fort Worth area. The growth boom is expected to continue.
A definite factor to add to the mix is Mother Nature. Hurricanes and fires fueled a demand certain to keep elevating the prices for building materials. And, even worse, an even greater shortage of skilled workers in disaster struck markets.
The real estate professionals are also becoming more cautious in their predictions. Home prices are rising about a 5% annual rate nationally. In the Dallas –Fort Worth area there are some areas that have increased as much as 7-9% annually. Affordability and Congress’ vote in December to change tax laws are all in the forefront with real estate professionals. Until homeowners really look at these new laws they will see not understand whether they are to their advantage or not.
Keep in mind that smaller home improvement projects, especially on the exterior of your home recoup over 75% of your cost. These projects include entry door replacement, vinyl window replacements, siding, garage door replacements and manufacturer stone veneer. Keep in mind that most interior projects such as kitchen and bathroom remodels also take a log of skill and labor. A general rule is the simpler the job, the cheaper it is and the more likely it will have a higher return on your investment. Also, while examining the scores, you will note that kitchens and baths don’t score as high as smaller projects because they are personal spaces. Your idea of a dream kitchen or bathroom style may be different than a potential buyer. It is all truly subjective….a kitchen and bath can actually be a selling point to a buyer with your same design taste. So, the moral of the story, it always adds value to your home when you keep it maintained and updated.
BRY-JO is full-service roofing and home remodeling company with design/build capability. By providing quality craftsmanship and unparalleled customer service, BRY-JO enhances both the beauty and livability of a space for years to come. Our clients always “love where they live.” Visit our website at bryjo.com or our profile on houzz.com.