5 Remodeling Projects that Pay Off :: Looking at Financial Aspect of Remodeling
*******
Home improvement contractors and remodelers might be wondering what the market’s looking like for jobs. With the housing crash from 2008 in the rearview, contractors have seen a rising real estate market resulting in more transactions and work requests. Home improvement contractors should feel pretty solid about 2014, as the housing industry and consumers are ready to move forward with improvements to their home.
Crunching home improvement numbers
According to national statistics, the last year has been good for home owners and investors, whom home improvement contractors often rely on for work. Going into 2014, Bigger Pockets reported the cost-value ratio was 66.1%, a 5.5 point jump from 2013 and highest since 2005, when it jumped 6.1 points to reach 86.7%.
What does this mean for home improvement contractors?
CNN Money reports that home-improvement spending is poised to enter the double digits by mid-2014. Bathroom and kitchen jobs lead in requests. Statistics have shown that the US spent about $310 billion on house improvements in 2013, almost $40 billion more than they did in 2011, according to the Dallas News.
Ready to remodel?
In the remodeling industry, current and future remodeling business conditions are also continuing to show growth. Remodelers are reporting the highest overall rating on business conditions of the year at 6.51 in the fourth quarter of 2013 to NARI. Many entered 2014 with requests for jobs in their queue, a first for some in the last few years. It’s been the confidence many have needed that 2014 will be the year for home improvement requests to soar.
What are the major projects homeowners seem to be investing in? While it’s hard to estimate what many will choose to invest in, bathroom and kitchen upgrades seem to be the high priorities because of their resale value. Along those lines, Remodeling Magazine recently released their Cost vs. Value Report for 2014, which also lists some upgrades that will yield high resale values for homeowners who intend to sell in the near future. Combined with HomeAdvisor’s True Cost Guide, a homeowner can more accurately budget for estimated costs and returns on investment.
Here are some of the top remodeling projects that pay, according to the magazine (with link to HomeAdvisor‘s corresponding Cost Guide – showing 2024 costs):
|
Project |
Cost Range |
Value |
| Replace door with steel door |
$910 – $1,300 |
96.6% |
| Build a deck (wood) |
$6,500 – $9,200 |
87.4% |
| Replace siding (fiber-cement) |
$7,700 – $11,000 |
87.0% |
| Build addition (attic bedroom) |
$42,000 – $49,000 |
84.3% |
| Replace a garage door |
$970 – $1,300 |
83.7% |
###
— Andrea Davis is the editor for HomeAdvisor, which helps homeowners find home improvement professionals in their area at no charge to ensure the best service in the shortest amount of time.
For more articles on working with Home Improvement Pros, please stick and click. For features from and on the very special Pros We Know, please enjoy that Category.
All images via HomeAdvisor.
Very interesting to note. Would have never imagined a deck would be so valuable.
all about the outside. curb appealing bam front door! ~jb
I’ve read in several other sources that kitchens are way high up there on the ROI list, as well; that the most presentable room of the home is invariably out to be the kitchen if you’re concerned about building a good resale value into your home.
I meant to type “invariably ought to be”. Sorry!
Great remodel ideas. The return value on the steel door is quite impressive.
cheers. Nick. I know! and I think it points more broadly to the value of curb appeal. thanks for the comment. ~jb @BuildingMoxie
Oh my, did I read that right? An attic addition has got lower return value?
I think I might have to return the mattress for the bed my husband just finished working on. My family is moving to a bigger home and I thought making the attic as another bedroom isn’t a bad investment.
Aubrey, I don’t think you should be too alarmed – as most items do not return their full value. But what is the value of usable space? and you gotta look at things in their current condition – would not doing something negatively impact you? Can your attic be spruced up and/or staged (if you are selling) without a huge investment? Remember also to be counted fully as a bedroom, the space needs a closet and technically a means of egress. Good luck with the move. ~jb @BuildingMoxie
Splurge in all the right places. Buy solid, but economical cabinets, flooring, and appliances, which are all big ticket items. Splurge on the details, such as stone tile accents on the wall, decorative lighting over the island or a fancy pull-out faucet. You’ll save thousands and only add on hundreds.
great points … thanks for adding Raleigh. ~jb @BuildingMoxie
Home improvement contractors should feel pretty solid about 2014, as the housing industry and consumers are ready to move frward with improvements to their home.Thanks for sharing this awesome information..
It makes sense that people want kitchens and bathrooms. Kitchens are often one of the first rooms people see in the house. It’s where people entertain and where people cook food every day.