Remodeling Cost vs. Value 2007 Report

Remodeling Cost vs. Value 2007 Report

Home rehabbers who are considering a move in the not-too-distant future should focus mostly on exterior upgrades. That's the message from REALTORSŽ who participated in Remodeling magazine's 20th annual "

Cost vs. Value Report", done in cooperation with REALTORŽ Magazine. On most projects, the value of remodeling trended down in 2007 compared with 2006. No project exceeded an 88 percent return. The likely culprits for the year-to-year drop: rising remodeling costs and slowing home appreciation brought on by the lackluster housing market in many areas.

The story was somewhat different in the Pacific region, however, where REALTORSŽ estimated cost recovery of more than 100 percent for six projects: a wood deck addition, a minor kitchen remodel, fiber-cement siding replacement, wood window replacement, and an upscale wood and vinyl window replacement. Nationally, projects at the bottom of the cost-recovery ladder included home office remodels (57 percent), installing a back-up power generator (58 percent), and adding a mid-range sunroom (59.1 percent).

Below is a cost comparison and analysis of the investment return on different types of renovation projects.

New England

2007

National Averages

Job Cost	Resale Value	Cost Recouped	Project Midrange	Job Cost	Resale Value	Cost Recouped
$48,982	$37,584	76.7%	Attic Bedroom Remodel	$46,691	$35,771	76.6%
$13,759	$7,317	53.2%	Back-Up Power Generator	$13,357	$7,748	58%
$61,673	$40,544	65.7%	Basement Remodel	$59,435	$44,661	75.1%
$38,617	$25,437	65.9%	Bathroom Addition	$37,202	$24,553	66%
$16,302	$12,197	74.8%	Bathroom Remodel	$15,789	$12,366	78.3%
$10,634	$8,977	84.4%	Deck Addition - Wood	$10,347	$8,835	85.4%
$81,931	$54,713	66.8%	Family Room Addition	$78,989	$54,148	68.6%
$55,598	$37,067	66.7%	Garage Addition	$53,897	$37,461	69.5%
$27,630	$15,398	55.7%	Home Office Remodel	$27,193	$15,498	57%
$56,438	$43,848	77.7%	Major Kitchen Remodel	$55,503	$43,363	78.1%
$102,741	$70,175	68.3%	Master Suite Addition	$98,863	$68,172	69%
$21,516	$18,507	86%	Minor Kitchen Remodel	$21,185	$17,576	83%
$20,307	$14,065	69.3%	Roofing Replacement	$18,042	$12,166	67.4%
$9,990	$9,156	91.7%	Siding Replacement	$9,910	$8,245	83.2%
$71,064	$41,289	58.1%	Sunroom Addition	$69,817	$41,231	59.1%
$143,298	$105,475	73.6%	Two-Story Addition	$139,297	$103,010	73.9%
$10,702	$8,698	81.3%	Window Replacement - Vinyl	$10,448	$8,290	79.3%
$11,697	$9,514	81.3%	Window Replacement - Wood	$11,384	$9,241	81.2%

New England

Project Upscale

National Averages

Job Cost	Resale Value	Cost Recouped	Project Upscale	Job Cost	Resale Value	Cost Recouped
$75,281	$48,236	64.1%	Bathroom Addition	$73,145	$50,442	69%
$51,930	$33,415	64.3%	Bathroom Remodel	$50,590	$34,588	68.4%
$15,224	$11,833	77.7%	Deck Addition - Composite	$15,039	$11,672	77.6%
$84,922	$55,901	65.8%	Garage Addition	$82,108	$53,056	64.6%
$110,450	$84,689	76.7%	Major Kitchen Remodel	$109,394	$81,096	74.1%
$226,020	$144,787	64.1%	Master Suite Addition	$220,149	$141,120	64.1%
$37,396	$24,016	64.2%	Roofing Replacement (steel)	$33,151	$21,769	65.7%
$13,310	$11,517	86.5%	Siding Replacement (fiber-cement)	$13,212	$11,633	88.1%
$12,182	$10,328	84.8%	Siding Replacement (foam-backed vinyl)	$12,132	$9,668	79.7%
$13,913	$11,470	82.4%	Window Replacement - Vinyl	$13,479	$10,913	81%
$17,729	$13,682	77.2%	Window Replacement - Wood	$17,383	$13,784	79.3%