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Weighing Cost vs Value When Remodeling

Does Remodeling Increase the Value of Your Home in Plano, TX?

There are several considerations when making that decision when remodeling a home.  There are several reasons you may consider home remodeling – home is dated and you want a new look; forced to remodel due to water damage; or you have even possibly outgrown your space. 

If you plan to live in your home for as long as possible, your remodeling decision is solely based on lifestyle and the impact on your daily life.  Resale is never an issue.  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 to consider remodeling cost vs value.  Each year a Cost vs Value Report/Study is published yearly by Remodeling Magazine in February 2020 https://www.remodeling.hw.net/cost-vs-value/2020/

For the past two years remodeling activity across the country has been high and many homeowners plan to do even more projects in the next two years according to the survey, As a matter of fact, the survey found that eight in ten homeowners renovated a kitchen, bathroom or laundry room in the past two years.  As compiled here in the Dallas area, the cost of a minor kitchen remodel mid-range can be recouped 76.4% in the Plano, TX market. The cost of a major kitchen remodel mid-range can be recouped 61.3%. Bathroom remodels and Universal Design bathroom remodels mid-range can be recouped 65.7%. 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, a trade war and unstable global market have created a dizzying mix of news reports.  This has definitely created angst among real estate professionals and home buyers.   Overall the home market has remained strong.  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 has risen and materials coming out of China have been hit with tariffs.  Many Home Remodelers are even shifting their vendor selections based on where the product is manufactured to keep costs in line.  Plano, TX has been fortunate that our property values have been on the rise the past two years and are holding steady.  Plano, TX continues to be a high demand area due to the schools and close proximity to many businesses.  Texas is still one of the best buys in the country. 

On the value side, if you look at the report nationally you will note that high demand areas in the U.S. control the market.  With growth because of major corporate relocations to Dallas-Fort Worth and its surrounding areas, we are quickly recouping value quicker than five years.  You have seen this for years in Silicon Valley, Seattle, Washington where high tech dominates. 

Keep in mind that smaller home improvement projects, especially on the exterior of your home recoup over 70% of your cost for most of the projects. These projects include entry door replacement, vinyl window replacements, siding, garage door replacements and manufacturer stone veneer. Your interior projects take a log of skill and labor.  Usually, the easier the job, the less expensive with a higher return on your investments.  Keeping your home maintained and updated will never hurt you in the resale of your home.  Following current style trends is always worth considering when remodeling. Your Professional Remodeler will be able to assist you in product selection.   This year’s respondents in the survey identified modern as the ideal style.  Around three in 10 identified contemporary, traditional, and eclectic styles.  Smart homes are also on the rise while energy efficiency is a key factor.  Take some time to read the full report at https://www.remodeling.hw.net/cost-vs-value/2020/ if you plan on doing any home renovation in 2020. 

BRYJO is full-service roofing and home remodeling company with design/build capability. By providing quality craftsmanship and unparalleled customer service, BRYJO 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.

 

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