Cost vs Value
http://www.remodeling.hw.net/cost-vs-value/2016/
There is the link (listed above) to the most comprehensive, nationwide analysis of remodeling costs and their values.
So why is this important? The data provides valuable information on several decision-making levels.
As a consumer looking to remodel, the data establishes an average cost for various types of remodeling projects. You can use this as a guide to establish a “ballpark” budget for your project(s). I have heard others refer to this report as sort of a ‘Kelley Blue Book’ for remodeling.
The problem with that analogy is that automobiles are far more standardized than are remodeling projects. You get the idea I am sure.
Another valuable takeaway from this report is the immediate return on investment (ROI) you might expect. Should you be considering selling your home, and you and your Realtor feel it needs updating, you can refer to the data again to give you some notion as to what you might expect.
Often I am asked by Realtors and sellers to give advice on the efficacy of remodeling with an eye to selling. The question always leads to the variable of time. How soon are you looking to sell?
As a rule, the report give us a time frame of one year. That is to say, if you were to add a bathroom, or remodel your kitchen, the average value returned (ROI), can be fairly determined.
If, however, you were to remodel and remain in your home for another 2 years or more, this report begins to lose its accuracy. This is primarily due to the fluctuations of your local real estate market.
So look at the report, read about the process used to gather and interpret the data. If you are considering remodeling your home, and wanted some notion as to cost, here it is.
Tom
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