Home Remodeling Payback

The key to home remodeling vs. return on investment (ROI) today is comparing the condition of your home with the rest of your neighborhood or city.  What do comperable homes have to offer in terms of ammenities and upgrades?  Often simply bringing your home up to the standard of similar homes will determine how many days or even months your home will be on the market when you decide to sell.  Here in Danville CA, like many parts of the country, we have a market that is leaning more towards a buyers market.  That said, if your home is priced properly compared to homes with the same ammenities (# beds and bath, granite, etc.), it will sell in a reasonable amount of time.  

Also, I have found that buyers in this area want a home in ‘move in’ condition.  They don’t want to have to start the remodel process once they move in.  This means that buyers are willing to pay a little more if everything to upgrade the home has already been completed for them.  I have also found that homes that are not up to current standards of ammenities often lose a disproportionate amount in their sales price, or rather what buyers are willing to pay for that home.  As we all know, a home is only worth what a buyer is willing to pay for it.  In other words, the market determines the price of a home and we as realtors need to be skilled at reading the market to determine a sales price that is acceptable to the market or what someone is willing to pay for the home. 

Call me if you need some advice on market conditions or how your home stacks up to other comperable homes in the area at 925-216-3126 or shoot me an email at mailto:Marc@MarcWimmerHomes.com

Below is a chart from Remodeling Online that does a good job of showing ROI on improvements:

Cost vs Value 2006
	2006 National Averages			Region – Pacific
Project	Job Cost	Resale Value	% Cost Recouped	Job Cost	Resale Value	% Cost Recouped
Mid-Range
Attic Bedroom Remodel	$44,073	$35,228	79.90%	$52,583	$51,698	98.30%
Basement Remodel	$56,724	$44,685	78.80%	$66,861	$62,004	92.70%
Bathroom Addition	$28,918	$21,670	74.90%	$34,311	$31,195	90.90%
Bathroom Remodel	$12,918	$10,970	84.90%	$14,889	$15,361	103.20%
Deck Addition	$14,728	$11,307	76.80%	$16,297	$14,846	91.10%
Family Room Addition	$74,890	$53,519	71.50%	$88,371	$72,247	81.80%
Home Office Remodel	$20,057	$12,707	63.40%	$22,385	$17,403	77.70%
Major Kitchen Remodel	$54,241	$43,603	80.40%	$59,716	$58,004	97.10%
Master Suite Addition	$94,331	$68,458	72.60%	$111,157	$95,916	86.30%
Minor Kitchen Remodel	$17,928	$15,278	85.20%	$19,366	$20,614	106.40%
Roofing Replacement	$14,276	$10,553	73.90%	$17,060	$15,160	88.90%
Siding Replacement (vinyl)	$9,134	$7,963	87.20%	$11,173	$9,919	88.80%
Sunroom Addition	$49,551	$32,854	66.30%	$55,813	$39,412	70.60%
Two-Story Addition	$105,297	$87,654	83.20%	$122,085	$123,969	101.50%
Window Replacement (wood)	$11,040	$9,416	85.30%	$12,684	$12,963	102.20%
Window Replacement (vinyl)	$10,160	$8,500	83.70%	$11,768	$11,338	96.40%
Upscale
Bathroom Addition	$60,535	$44,041	72.80%	$68,852	$59,355	86.20%
Bathroom Remodel	$38,165	$29,529	77.40%	$43,050	$40,938	95.10%
Major Kitchen Remodel	$107,973	$81,896	75.90%	$115,549	$103,798	89.80%
Master Suite Addition	$176,268	$128,096	72.70%	$199,312	$166,000	83.30%
Roofing Replacement	$24,693	$18,012	72.90%	$28,884	$24,526	84.90%
Siding Replacement (fiber cement)	$13,149	$11,573	88.00%	$13,539	$13,783	101.80%
Siding Replacement (foam-backed vinyl)	$11,139	$9,258	83.10%	$13,544	$11,790	87.10%
Window Replacement (wood)	$16,910	$13,952	82.50%	$19,022	$18,877	99.20%
Window Replacement (vinyl)	$13,120	$11,109	84.70%	$15,200	$14,679	96.60%