Beauty Article

You may be wondering how much of your expenses you will recoup when you sell your home. For the last 20 years
in an effort to help homeowners answer that question
Remodeling magazine has produced an annual “Cost vs. Value” Report.

The 2007 report has just been released
and key highlights include:
• Focus on exterior upgrades as the “best value” projects;
• Highest value home enhancements were: upscale siding replacement using fiber cement materials
wood deck addition
and a midrange vinyl siding replacement;
• The best interior home project nationwide is a minor kitchen remodeling;
• For Houston Texas and the West South Central Region average costs recouped are 6% higher than the national average and best value projects differed slightly.

The National Association of Realtors and Specpan collected information from nearly 3
0
responses to a web-based survey. This year’s report found that due to the housing market slump
the percentage of construction costs recovered is lower across all projects compared with 2006. The most likely culprits for the year-over-year drop are slower home appreciation rates due to the lackluster real estate market in most parts of the country and rising remodeling costs.

However
remodeling is still a pretty good investment. Over 60% of projects undertaken in 2007 are projected to return between 65% and 80% at a home’s resale. This means your real cost is just 20 cents to 35 cents on the dollar for most home improvements.

Nationally
projects that are at the bottom of the “value” ladder include a home office remodeling
adding a mid-range sunroom
installing a back up generator and garage additions.

Location Dependant

As you might expect
the amount you recoup at a sale varies depending on your location. While the percentage of costs returned in Mid-Atlantic and New England cities is fairly constant year to year
within California
Oregon
and Washington
remodeling costs recouped at resale are over 10% greater than the national average.

Also of interest
cities in the southeast and southwest that are experiencing a building boom actually fall below the national average when it comes to recouping home improvement costs. One explanation for this trend is the fact that because these areas have plenty of new homes lingering on the market and falling in price
buyers are turning their backs on even the most attractive renovated older homes.

Houston Texas Renovations

According to the study
Houston Texas and the West South Central Region of the US differed slightly from national averages.

Top renovation projects (and the expected “cost recouped” at sale) include:
• Fiber-cement siding replacement (93%)
• Bathroom remodeling (91%)
• Minor kitchen remodeling (88%)
• Basement remodeling (87%)
• Wood deck addition (86%)

Lowest value renovation projects (and the expected “cost recouped” at sale) include:
• Sunroom addition (59%)
• Home office remodeling (64%)
• Installation of a back up power generator (68%)
• Roofing replacement (69%)
• Garage addition (71%)

As fluctuations in the US housing market continue and impact home buyers and sellers nationwide
it is important to stay current on factors that impact your home’s value. Just like investing in stocks and mutual funds
your decision to remodel your home should begin with considered evaluation of your current circumstances and future goals. For more home improvement information visit http://www.houstonproperties.com