Mt. Horeb Area Real Estate Blog

Remodeling Magazine Cost Vs. Value Report for 2008-2009

Remodeling Magazine has released the latest Cost V. Value Report, one of my favorite reports each year.  We are lucky that they feature Madison WI as one of the areas they look at.  I highly recommend looking that all the number and particularly the brief statement about "Using the Numbers" or what the numbers mean. 

For all homes, there is a point where a significant amount of money in will not see a return.  I live in one of those homes.  It's a small Victorian cottage type house.  Despite the fact that "siding replacement" was one of the area where return on investment rose, it wouldn't make sense for me to do that. Bottom line--it's still a small house and no matter how gorgeous I make it, there will be a limit to what a buyer will pay based on square footage.

For Madison Data on Cost V. Value, click HERE

For "Using the Numbers", click HERE

Cost V. Value

  Every spring when Realtors are asked to list homes, many of us are inevitably given a list of all the improvements a homeowner has made, tallied up to the penny and then asked to add that on to the  value of the house.  Unforunately, rarely do home improvements see 100% of the cost returned on improvements.  I, too, wish that were true as I live in an small old victorian that we consistently drop money into.

The trend over the last year or so is that homeowners, hesitant of the market, are choosing to stay put and make home improvements, vs. moving up and out into another home.  If you are a homeowner looking to make some improvements, you may find Remodeling Magazine's 20th Annual Cost Vs. Value Report interesting and helpful in deciding where to put your money.

Here are just a few of the stats for the Madison Area:

                                              Job cost            Resale Value           Payback

Upscale Siding Replacement       $13,300            $13,343                   104.8%

(such as fiber-cement)

Deck Addition                            $10,264            $8,371                     81.6%

Window Replacement                 $11,691            $9,776                    83.6%

(Wood)

MINOR Kitchen Remodel             $21,599            $19,690                    91.2%

While these statistics can provide some guidance, it's important to keep in mind, that cost recouped really depends on a wide variety of factors.  A few of these are:  Condition of the remainder of the home, value of similar homes nearby, and area appreciation.  One of the most important factors is cost of new homes in the vicinity since many buyers would choose brand new vs. remodeled if the cost is similar.

Many clients ask me to come in and give them some feedback and advice for possible remodeling projects. As a hobby remodeler, I like to see what homeowners are planning for improvements.   Let me know if you'd like my opinion on your upcoming projects.

Happy Spring Remodeling!

(sorry about the formatting! I'm haven't figured out how to insert a table and have the format stay put!  It looks great on my version but then as soon as I post, it's all messed up!  Hopefully you can still understand the info--if not email me!  KT)