Houston Remodeler William Shaw and Associates 2009 Remodeler of the Year

Remodeling Ideas

Houston’s Return on Investment for Remodeling Projects

We’ve all seen the numbers on the amount of money you can recoup from doing a home improvement project. Some of them are quite exaggerated, and others seem to peg the costs at a pretty low point, misleading Houston homeowners into thinking they can get something for nearly nothing.

Here’s what you need to know. The official Cost vs. Value report is researched and reported by Remodeling magazine, a trade publication for remodeling contractors. We subscribe. In fact, we recently were selected by the magazine for their Big 50 award, which recognizes the 50 best remodeling contractors in the country.

Remodeling editors identify a number of typical remodeling projects, such as attic remodel or window replacement or major kitchen remodel. Then they identify typical elements of such a project and price a typical and upscale project. WARNING: the pricing on these projects can – and usually seems to – vary considerably from the pricing on the project you may be considering. This is one of the concerns about this report. Too often, homeowners think this is an average price or a price for their project. There are so many variables the costs of the projects can vary considerably.

After establishing a price, the editors turn to real estate professionals and appraisers and ask them what they would anticipate that project would add to the resale value of a home after two years. That last point is important, because historically, real estate has increased in value, so the value of an improvement project would increase over time. They then report the cost recouped as the value returned.

Take a look at the full report www.costvsvalue.com. You can also download the report for the Houston market, although the numbers in any given market are more volatile than the national numbers because the number of professionals reporting is significantly smaller. Less data means less reliability. Still, overall the Houston numbers tend to fare better than national figures.

How does this help your decision-making process for home improvement? I know very few people who take on a remodeling project to increase the value of their home. They do it for lifestyle considerations. They want a home that works for the way they live their lives. But when you’re deciding between a new kitchen and a new car, you have to remember that your investment in the kitchen will ultimately be recouped. That car is just going to decrease in value over time.

The most important project you can take on to increase the value of your home? Maintenance. A study by the Joint Center for Housing Studies at Harvard’s Kennedy School of Government showed that for every dollar spent on home maintenance, home values increased two dollars. By any measure, that’s a good investment.

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  • http://pulse.yahoo.com/_T25LPAPDA2LWFZ3TSPPMMQUGPU Jay

    While home renovation is in progress, money is the thing which matters the most. If the finances are less the renovation project may be hindered, the guidelines given here useful even if we have a small budget. Thanks for the share.
    Renovation company in Connecticut

  • http://www.ipcworkers.com/ Indy Remodeling

    When considering a remodeling project virtually all homeowners are interested in their return on investment.  The chart above is a very fair and complete point of reference.  A remodeling project can also add personal value which may be much higher than these figures.  With many people looking to remodel instead of selling due to decreased values, this information will be helpful.

  • http://electrician-brisbane.net.au/contact/ Electrician In Brisbane

    This project is just what the doctor ordered. :)  I think it will help a lot of people and give them a better chance of improving in general. Great move! 

  • http://www.holmetree.co.uk/kitchens/hand-painted-kitchens Rews @ Handmade Oak Kitchens

    I could save more money by using home improvement project, but the reason is it is hard to select right one among lots of projects.

  • Cooper Pie

    I’ve seen a lot lately how a lot of people are starting to do their own home renovations. And I think that it can be a great idea, because it can end up saving you a lot of money. But at the same time it can pose to be a bit of a challenge if you don’t quite know what you’re doing. So that’s one thing that you might have to look for.

  • Chloe Winslet

    i am looking for a contractor who could help me in remodeling my 2nd floor which is not yet done..whom i could trust also..

    commercial awning pittsburgh

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