Earlier this year, Remodeling Magazine released their annual Remodeling 2015 Cost vs. Value Report (www.costvsvalue.com).
This year’s report reflects that while costs rose consistently, the values only did so half as often.
“This 2015 edition of the Cost vs. Value Report, which compares changes in job costs with Realtors’ perceptions of what those jobs bring to a home’s price at resale, reflects the mixed messages that were delivered by the housing market in 2014. In housing, it took until October before monthly sales of existing homes 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 ho-hum performance might have influenced Realtors nationwide when they sat down last fall to predict the boost a remodeling or replacement project would bring to a home’s resale value. Compared with the previous year’s survey, the Realtors increased by up to 11.6% the value of 17 projects, but they reduced 18 projects’ predicted payback by as much as 8.32%. The average change was a gain of just 0.29%.”
Here in Lancaster County, the outlook is strong for remodeling. The projects that are projected to recoup the largest gains locally are all exterior: wooden decks (74.4%), fiberglass entry door replacement (88.6%), garage door replacement (82.9%) and stone veneer accents (82.0%).
While the percentages on some projects may be lower than you’d like, keep in mind that the Cost vs. Value Report is not based on actual projects. Costs can vary significantly depending on materials selected and the size and scope of a project. Read “What the Numbers Mean” for a full disclosure.
If you are considering renovating your home, learn more about how we can help you remodel your home.