Cost vs. Value
Remodeling Magazine has issued its 2015 “Remodeling Cost Value Report.” The purpose of this report is to break down the return that homeowners and contractors can expect from their home remodeling projects and how that return will affect the overall resale value of their home. This report is released yearly and often provides information about new remodeling trends which can enable homeowners to understand what potential home buyers expect in an up-to-date property. Projects are broken down by type (kitchen, bath, exterior), cost (affordable, mid-range, upscale) and expected return.
The overall cost-value ratio provided by the latest Cost vs. Value Report ended two years of gains by falling to 62.2% for 2015. That’s 3.9-points lower than last year but this is still the second-best number in the past five years.
This Cost vs. Value Report, which looks at changes in job costs in comparison with Realtors’ beliefs about what those jobs bring to a home’s price at resale, reflects several mixed messages delivered by the housing market in 2014. In housing, it wasn’t until October before monthly sales of existing homes finally topped their year-earlier numbers, and the increase in median price paid for a home dropped by roughly half between last winter and last summer, according to the National Association of Realtors. New-home sales also were lackluster.
That less than stellar performance may have influenced Realtors nationwide when they predicted in fall 2014 that the boost a remodeling or replacement project would bring to a home’s resale value. Realtors increased the value of 17 projects by up to 11.6% over the previous year, but predicted payback of 18 projects was lowered by as much as 8.32%. The average change was a gain of just 0.29%.
Window replacement projects are among the higher ROI projects in this year’s report, which also include stone veneer-, decks-, entry door- and garage door- replacement projects that collectively generate a cost-value ratio that runs above average. Replacement siding in Houston TX also has a fairly high ROI compared to other upscale projects. Its important to remember that some markets perform better than others and that many variables influence the values. View the report below to learn more about the value of replacement windows, doors, and siding in Houston TX and beyond.
The report breaks down projects on a regional basis so that homeowners across the country can understand what to expect from their surrounding market.
Information presented as compiled in the Remodeling 2015 Cost vs. Value Report (www.costvsvalue.com)