Home improvement projects are booming, expected to cross $110 billion in total volume this quarter. Unlike in recent years, however, the projects aren’t always helping to create much new home equity.
Nationally, according to Remodeling Magazine’s Cost vs Value Report 2011-2012, today’s homeowners get a much smaller payoff on their home improvement projects: for each home improvement dollar spent in 2012, homeowners can expect to recoup just 58 cents in home equity. This figure is down sharply from 2005, when the cost-to-value ratio was 87 percent nationally.
In the San Francisco Bay Area, it appears that while each job cost is higher than the average national job cost, we recoup a higher percentage of that cost. For example, the average highest cost recouped nationally is 72.5% for an attic bedroom remodel. In San Francisco, the highest cost recouped is for a minor kitchen remodel at 115.5%. If you’re planning to remodel/update your Marin County home in preparation for sale, therefore, consider the following projects, each of which carries a high cost-to-value ratio.
From Remodeling Magazine’s “Mid-Range Project” list for the San Francisco Bay Area :
- Steel Entry Door Replacement : Cost, $1,542; Recoup, 105.7%
- Attic Bedroom : Cost, $68,168; Recoup, 101.6%
- Minor Kitchen Remodel : Cost, $22,067; Recoup, 115.5%
- Garage Door Replacement : Cost, $1,837; Recoup, 100.7%
- Wood Deck Addition : Cost, $13,963; Recoup, 90.9%
By contrast, other projects carry a low cost-to-value ratio, and should only be undertaken if the project’s utility exceeds its cost. These projects don’t do much to raise a home’s resale value.
- Home Office Remodel : Cost, $33,246; Recoup, 67.5%
- Sunroom Addition : Cost, $90,406; Recoup, 62.6%
- Backup Power Generator : Cost, $18,001; Recoup, 46.4%
- Bathroom Addition : Cost, $97,077; Recoup, 77.9%
- Fiberglass Entry Door Replacement : Cost, $4,117; Recoup 78.1%
If you’re planning a home improvement project over the next few months, the timing is right — both contractor costs and material costs are low nationwide, and improving a home can extend its useful life.
Should you need recommendations for top notch professionals to complete your remodeling projects, please feel free to contact me, I will be happy to refer you to the right person.
About the author: The above Real Estate information on Marin County Real Estate was provided by Sylvie Zolezzi. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789. I specialize in residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
My goal is to provide you with the best home buying or selling experience possible by combining my business and financial experience with meticulous attention to detail and a warm, personable and caring approach to meeting your needs. I have an excellent track record as a successful, results-oriented negotiator and effective communicator. My analytical skills and understanding of current market conditions, along with my ability to utilize a broad range of cutting edge technological and marketing resources, make me an invaluable real estate resource.
I am a long term Marin County resident and home owner. I strongly believe our quality of life is extraordinary and practically unmatched. I love our community, quaint towns and vast open space and never tire of their breathtaking beauty. I know the neighborhoods, the schools, the amenities; I know where you want to live. I know and love Marin County!