Every year Remodeling Magazine creates a “Cost vs. Value Report” looking at the 35 most common home remodel projects, analyzing the job cost, the resale value of a particular job and then looking at the percentage of the cost recouped. This is helpful when trying to determine how to improve the value of real estate for its ultimate sale.
Of course, strategies may be different for a fix-and-flip investor compared to the first time buyer that just purchased their first home or that of a move-up buyer looking to settle into their new Temecula/Murrieta home for many years to come. I guess that’s why they call it a guide; it’s here to help guide you and not make decisions for you.
When you visit the online version of the Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com), you’ll find that there are national results as well as regional reports.
Each regional report is broken down even further, into a total of 100 unique city reports. The data being shared here is from the Riverside, CA report – the most detailed available for the Temecula-Murrieta region. There is also a Los Angeles and San Diego report available on the website if you’re interested.
We’ve broken the report down to the top five projects that will give you the highest return on your investment.
1. Entry Door Replacement (Steel)
* Average Job Cost: $1,296
* Average Resale Value: $2,286
* Average Cost Recouped: 176.4%
* The new door should be 20-gauge steel with a clear dual pane half glass panel and new brass or antique brass finish.
2. Minor Kitchen Remodel
* Average Job Cost: $21,030
* Average Resale Value: $22,182
* Average Cost Recouped: 105.5%
* This makes use of what you have while bringing it up to date. Leave your cabinet boxes in place but replace the fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cook top (or Range) with new energy-efficient models (Energy Star). Replace laminate or tile countertops with granite or other solid surface; install a mid-priced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.
3. Siding Replacement
* Average Job Cost: $15,623
* Average Resale Value: $15,300
* Average Cost Recouped: 97.9%
* Replace existing siding with new energy efficient fiber-cement siding, factory primed and painted. Include all 4/4 and 5/4 trim using either fiber-cement boards or optional cellular PVC.
4. Window Replacement
* Average Job Cost: $14,334
* Average Resale Value: $13,736
* Average Cost Recouped: 95.8%
* Replace existing windows with insulated, low-E, simulated-divided-lite vinyl windows with a simulated wood-grain interior finish.
5. Garage Door Replacement
* Average Job Cost: $2,974
* Average Resale Value: $2,818
* Average Cost Recouped: 94.8%
* The new door should be a new 4-section garage door on new galvanized steel tracks, using the existing motorized garage door opener.
While every home is unique and every project is just as unique you’ll notice that four of the five projects with the highest rate of return all add to your properties curb-appeal. The projects with the most bang can mean the difference between a prospective buyer getting out of their car to look at your home or just driving right on by. After all, just like the book will never be read if the cover doesn’t capture the interest of the reader, no one will ever know how great your home is if they never cross the threshold.
Call us today and get the information you need to make the right decision. The info is free, call now! (951) 296-8887.
Questions regarding available inventory and/or other real estate matters please contact me, Mike@GoTakeAction.com. Mike Mason, Broker/Owner of MASON Real Estate Cal. BRE: 01483044,
Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR), Traveling State Director, California Association of Realtors® (C.A.R.).