One of the best forms of personal expression when owning a home is remodeling it to your liking. Aesthetic updates provide a sense and feel of “home” by combining creativity and proper workmanship. Homeowners are advised to research the type of improvements prior to implementing them to evaluate the return on your investment. An aesthetic improvement does not always provide the adequate return on investment. A good question to ask is, “Once I do this remodeling project, will I be able to recuperate my investment?”
Project Budgeting
Budgeting is one of the more difficult feats when deciding to do a remodeling project. It is difficult to establish a budget based on a magazine clipping from Architectural Digest or Home & Garden. I recommend creating a remodeling fund for your remodeling “wish list”. It isn’t that common for homeowners to tap into their home equity lately, especially in certain areas, because of the decrease in home and equity values. It is a good idea to discuss your project with your CPA or financial advisor or even a loan officer if you plan on getting a line of credit.
Silent Vs Hard Costs
Homeowners become enamored by images without regard to both hard and silent costs. Hard costs are usually associated with the actual improvement and may or may not include allowances provided for fixtures. Silent costs are usually what hurt homeowners and include unknown damage or deferred maintenance that is not visible. Some silent costs include dry rot, termite damage, mold, wood destroying insect damage, etc.
Selecting a contractor
Many contractors now provide free estimates for your review so take advantage of this. You must be upfront with your contractor and request they provide you a line-itemized estimate. It is unfair to you as a customer to receive a kitchen remodeling project with vague estimate and a ballooned price. Allowing for a detailed estimate per room is something that I encourage my clients to request. A per room estimate will alleviate the headache of rounded numbers for painting, carpentry, plumbing and other repairs.
Most Popular Remodeling Projects in Houston - Cost Vs Value 2009-2010
HOUSTON — MIDRANGE PROJECTS
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2009-10 NATIONAL AVERAGES
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Job Cost | Resale Value | Cost
Recouped | Project | Job Cost | Resale Value | Cost
Recouped | Change VS 2008 |
$41,389 | $40,448 | 97.70% | Attic Bedroom | $49,346 | $40,992 | 83.10% | Up |
$12,540 | $9,789 | 78.10% | Back-Up Power Generator | $14,304 | $8,428 | 58.90% | Up |
$52,931 | $49,010 | 92.60% | Basement Remodel | $62,067 | $46,825 | 75.40% | Up |
$33,188 | $22,955 | 69.20% | Bathroom Addition | $39,046 | $23,233 | 59.50% | Down |
$14,109 | $11,532 | 81.70% | Bathroom Remodel | $16,142 | $11,454 | 71.00% | Down |
$14,463 | $10,011 | 69.20% | Deck Addition (composite) | $15,373 | $10,904 | 70.90% | Down |
$9,773 | $7,924 | 81.10% | Deck Addition (wood) | $10,643 | $8,573 | 80.60% | Down |
$70,827 | $51,071 | 72.10% | Family Room Addition | $82,756 | $54,051 | 65.30% | Down |
$50,123 | $33,538 | 66.90% | Garage Addition | $58,432 | $36,361 | 62.20% | Down |
$26,101 | $13,970 | 53.50% | Home Office Remodel | $28,375 | $13,648 | 48.10% | Down |
$52,405 | $39,346 | 75.10% | Major Kitchen Remodel | $57,215 | $41,260 | 72.10% | Down |
$88,750 | $61,959 | 69.80% | Master Suite Addition | $103,696 | $67,578 | 65.20% | Down |
$20,077 | $16,557 | 82.50% | Minor Kitchen Remodel | $21,411 | $16,773 | 78.30% | Down |
$15,148 | $10,734 | 70.90% | Roofing Replacement | $18,731 | $13,133 | 66.60% | Up |
$9,365 | $7,394 | 79.00% | Siding Replacement (vinyl) | $10,607 | $8,476 | 79.90% | Down |
$66,046 | $34,375 | 52.00% | Sunroom Addition | $73,167 | $37,118 | 50.70% | Down |
$139,048 | $99,095 | 71.30% | Two-Story Addition | $156,309 | $107,286 | 68.60% | Down |
$9,285 | $6,859 | 73.90% | Window Replacement (vinyl) | $10,728 | $8,217 | 76.60% | Down |
$10,168 | $7,802 | 76.70% | Window Replacement (wood) | $11,700 | $9,044 | 77.30% | Down |
HOUSTON — UPSCALE PROJECTS
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2009-10 NATIONAL AVERAGES
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Job Cost | Resale Value | Cost
Recouped | Project | Job Cost | Resale Value | Cost
Recouped | Change VS 2008 |
$66,720 | $48,807 | 67.20% | Bathroom Addition | $75,812 | $43,888 | 57.90% | Down |
$46,865 | $33,724 | 72.00% | Bathroom Remodel | $52,295 | $32,196 | 61.60% | Down |
$35,426 | $21,829 | 61.60% | Deck Addition (composite) | $37,745 | $22,934 | 60.80% | Down |
$75,871 | $47,310 | 62.40% | Garage Addition | $87,230 | $48,762 | 55.90% | Down |
$105,621 | $69,898 | 66.20% | Major Kitchen Remodel | $111,784 | $70,641 | 63.20% | Down |
$203,593 | $124,873 | 61.30% | Master Suite Addition | $225,995 | $125,793 | 55.70% | Down |
$29,554 | $19,474 | 65.90% | Roofing Replacement | $35,359 | $22,610 | 60.50% | Down |
$12,874 | $11,121 | 86.40% | Siding Replacement (hardiplank) | $13,287 | $11,112 | 83.60% | Down |
$11,671 | $9,738 | 83.40% | Siding Replacement (vinyl) | $13,022 | $10,285 | 79.00% | Down |
$11,888 | $9,378 | 78.90% | Window Replacement (vinyl) | $13,862 | $10,601 | 76.50% | Down |
$15,899 | $11,875 | 74.70% | Window Replacement (wood) | $17,816 | $12,738 | 71.50% | Down |
Source: Remodeling Cost vs. Value Report, copyright 2009-10 by Hanley Wood LLC & REALTOR Magazine, Dec 2009 issue.
Special thanks to:
MIF Contracting, LLC
Tel: 713-541-4685
Web: www.mifgc.com
Email: mifgc@email.com
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