New Remodeling cost vs. value report out
Hello All,
The new Remodeling Cost vs. Value report is out. They’ve added some new features to the report this year like 3d models of the different projects. Which helps me a lot to visualize what exactly is included in the project.
http://www.remodeling.hw.net/2009/costvsvalue/national.aspx
It looks like they’ve got it broken down by sectors but not cities right?
When I click on the west-Pacific I believe it gives me values for that entire area even though I can click on San Francisco-is that how it works?
I was wondering if any of you pro’s had looked at this and how you think their average values compare to your experience?
I did note that all of my areas prices were higher than the national averages! hurray!
Daniel Neumansky
Restoring our second Victorian home this time in Alamdea CA. Check out the blog http://www.chezneumansky.blogspot.com/
Oakland CA
Crazy Homeowner-Victorian Restorer
Replies
from my past observations of that report, 'value' is that reported in the opinions of real estate pros - somewhat subjective terminology more appropriate for flippers and financiers than for builders and owners
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Ya I agree the value side seems fishy to me or at least less dependable of a number than the cost numbers.
I see this report being mentioned constantly in the papers, magazines its really seems like its the bible of this kind of thing...
What's your opinion on the cost side? Is it in the range for your area?
In my area it says that the average cost for a 2 story addition 385 sq ft per floor with the bottom floor being a family room and the top floor having a master bedroom and bath is uh,...$185,000 compared to the bids I was getting to do similar stuff that seems pretty reasonable....
Daniel Neumansky
Restoring our second Victorian home this time in Alamdea CA. Check out the blog http://www.chezneumansky.blogspot.com/
Oakland CA
Crazy Homeowner-Victorian Restorer
You and I are both in areas that are on the extreme fringe of costs.being on an island means I have to add 15% right off the batt
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
It's nice to show a prospect so they see the HIGH cost in your area vs. your very reasonable projected estimate.
I agree with piffin that the value figures are subjective. If a house is overpriced when you buy it. The kitchen remodel numbers don't mean diddley as far as value return. You've already passed the REAL value of the property-no remodel can alter that.
The value to you the homeowner is not reflected in those numbers.
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Remodeling Contractor just outside the Glass City.
http://www.quittintime.com/
Seems pretty good as baseline info. Having just sold my place after some fix-up, I'd say the numbers are relevant, if not perfect.
The main thing to note (and I've had to explain this to many wanna-be flippers) is almost no remodel job pays back 100% or more of the cost on average.
Any given property might have a weak link or two which should be addressed, but in general, the most profitable way to sell a place is to do as little as possible, and any realtor will tell you that.
Do the remodel because you plan to enjoy it, and forget about the relative investment... Apples and oranges.
k
Yep I agree.
I was kinda trying to look at the 'value' numbers in a way where if I could DIY the same job for say 2/3 of the value number (of course my labor is free) then it could possible pay to do that particular job myself.
Right now our house is probably substantially under developed compared to the rest of the neighborhood (what with a gutted top and bottom floor...) that it might make sense for us to attempt to fix up some of these issues before we attempt to sell...if we ever attempt to sell it.
Daniel Neumansky
Restoring our second Victorian home this time in Alamdea CA. Check out the blog http://www.chezneumansky.blogspot.com/
Oakland CA
Crazy Homeowner-Victorian Restorer
It's really an art, and a guessing game. In the end, you never know exactly what the buyer's going to do with the place, so some of the work could potentially be in vain.
However, certain aspects are going to make the place more appealing to the broad range of folks, and will therefore raise the whole interest level.
In terms of unfinished units, it seems like the best bet would be to go ahead and finish them, but in the least expensive (without obvious corner-cutting) way possible. If there are a few items (like a skylight, or a deck) that will really make it pop, then go ahead, but stay away from high end or very unique finishes and appliances. If the buyer wants a jacuzzi on each floor, let them put it in...
Also, in the Bay Area, get a structural inspection, and address the major issues. You may not turn a profit directly on that work, but you'll avoid a potential deal-breaker.
k