Why We Use the Annual Cost vs. Value Report
If you are planning a renovation in your home, here is one tool we recommend: Cost vs. Value report. When we meet with clients, we use the report as a guide. Remodeling Magazine publishes it every year.
Why do we provide the annual Cost vs. Value report? We want homeowners to understand:
the investment they are making in their home and what they might be able to recoup when they sell their house
the types of renovations (kitchens vs. bath vs. other spaces) and costs associated with the level of materials used to help understand budgeting
how costs/value compare with other regions in the country
how to finance their project and what a bank loan might require
Understanding the Cost vs. Value Report
There are now two levels of projects, costs and recoup percentages presented in the report:
Upscale
Midrange
Each project represents an average in that category with square footage and typical materials used but, as explained in the subjective value paragraphs, might not reflect the actual costs for your individual project.
As for the value of the projects, again, there is data that shows the average recoup percentage when the home is sold, but it doesn’t necessarily reflect the personal value that a client might attach to enjoying a new luxury master bathroom.
Among topics covered in the report are key trends and data for 29 types of projects nationally, by region and by city. The numbers for construction cost estimates were generated by RemodelMAX, a publisher of estimating tools for remodelers, using Clear Estimates remodeling software.Resale value data for each project was aggregated from estimates provided by real estate professionals via an online survey conducted by Hanley Wood. You can read more about the methodology here.
Key Trends for 2019
The good news is that the economy has supported a busy remodeling industry and home sales, especially in New England, have been steady. While the costs of projects have increased – likely due to tariffs and labor costs – the recoup percentages have mostly been positive. The universal bath category has been revised for 2019 and a new category of roofing has been added. Read more about key trends in the 2019 Cost vs. Value Report.
Blame HGTV!
Popular remodeling TV shows have skewed expectations for homeowners. Maybe you see Chip and Joanna Gaines flipping homes in Waco, Texas and wonder how they can do it for those prices. What you do not see on those television shows are the actual timeline of the work and transparency of the true budget. Rarely do luxury home magazines include the costs of the beautiful projects presented. Houzz does provide some budget information for professional projects, so when you see something you like, dig deeper to research the costs. If you’re simply looking for inspiration, Houzz, HGTV and shelter magazines are fabulous!
Best advice for planning a renovation?
Our best advice to homeowners planning a renovation is to ask questions. And, be patient with the time it takes to properly and thoroughly plan a home renovation project. We believe the planning process is the foundation of a successful project. Want to know more? We would love to help you envision your home refreshed…let’s talk.