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Which Remodeling Projects Pay Off?

RealtyTrac Staff

 Anyone planning to buy or invest in a foreclosure property should budget for the basic cosmetic repairs — a fresh coat of paint, new carpet and maybe some simple touches like new light fixtures. But many foreclosure buyers and investors need to go far beyond the basic repairs to transform the property into a profitable investment — while spending as little as possible to do so. Lowe’s, in partnership with the Remodeling 2008-2009 Cost vs. Value Report, recently created the interactive Project Payback Calculator to help customers and investors identify the average cost and payback of various home improvement projects in their local market.


Some of the best remodeling projects involve making a home more energy-efficient — which also saves on monthly utility costs. Energy-efficient projects like double-hung window replacements (vinyl), which costs $10,537 for 10 windows, are high on the list, recovering 77 percent of their cost, while a bathroom remodel, which costs around $15,899, generates a 75 percent return on the investment.


The exterior of the house, which can be a major selling point for buyers, is another area where remodeling projects can leave a lasting impression. Consider siding replacement, which costs around $13,177, and generates an 87 percent return on the investment.


And don’t forget about the backyard either — an important feature when selling your home. Outdoor living areas can be a sanctuary as more and more Americans “nest” during these recessionary times. So consider adding a wood deck, which runs around $10,601, and recovers 82 percent of its cost.


Lowe’s and MONEY® Magazine have provided more information and project guidance on smart home improvement projects at Lowes.com/Homewise.

Please note, these prices truly DO NOT represent what INTEGRITY CONSTRUCTION CAN OFFER YOU. Just recently completed a major 1000sq ft addition with master bedroom, master bathroom with double shower system tile floor to ceiling, complete contemporary kitchen, poolside bathroom, re roof entire home with 3 shaded concrete roof tile, new stucco on entire 3000 sq ft two story home (same house) for less than $165,000. Job completed January 2012

Also just completed an entire kitchen (contemporary style again, stainless steel tile backsplash) moved walls, complete tile floor system throught out the 1st floor, remodel a small guest bathroom, paint, new texture on all walls & ceilings, install all new appliances (owner provided) for under $30,000 job completed January 2012    

Projects based on 2008-2009 Please see how cost have changed based on new figures down below

 As compiled in the Remodeling 2008–09 Cost vs. Value Report (www.costvsvalue.com)

NATIONAL AVERAGES

 

LOWER BUDGET PROJECTS

Job Cost

Value at Sale

Cost Recovered

    
    
    

Bathroom Addition

$38,078

$24,187

63.50%

Bathroom Remodel

$15,899

$11,857

74.60%

Deck Addition - wood

$10,601

$8,676

81.80%

Family Room Addition

$81,315

$53,608

65.90%

Garage Addition

$57,272

$38,161

66.60%

Home Office Remodel

$28,094

$15,329

54.60%

Major Kitchen Remodel

$56,611

$43,030

76.00%

Master Suite Addition

$101,571

$67,037

66.00%

Minor Kitchen Remodel

$21,246

$16,881

79.50%

    
    
    
    
    
    
    

HIGHER BUDGET PROJECTS

Job Cost

Value at Sale

Cost Recovered

Bathroom Addition

$74,325

$49,100

66.10%

Bathroom Remodel

$51,455

$36,400

70.70%

Deck Addition - composite

$15,277

$11,260

73.70%

Garage Addition

$85,844

$53,908

62.80%

Major Kitchen Remodel

$110,964

$78,398

70.70%

Master Suite Addition

$223,876

$136,764

61.10%

    
    
    
    
    
 
As compiled in the Remodeling 2011–12 Cost vs. Value Report  (www.costvsvalue.com) An entire list for San Diego can be found www.costvsvalue.com

 

  Pacific — Mid-range  SAN DIEGO

2010-11 National Averages
Job Cost Resale Value Cost Recouped Project Job Cost Resale Value Cost Recouped Change vs. 2009-10
        
        
       
$49,508 $31,302 63.2% Bathroom Addition $40,710 $21,695 53.3% Change
$19,490 $15,514 79.6% Bathroom Remodel $16,634 $10,668 64.1% Change
$17,552 $13,878 79.1% Deck Addition (composite) $15,620 $10,337 66.2% Change
              
        
       
              
$73,834 $48,204 65.3% Garage Addition $60,608 $35,876 59.2% Change
        
               
$65,686 $50,556 77.0% Major Kitchen Remodel $58,367 $40,126 68.7% Change
$131,566 $89,058 67.7% Master Suite Addition $108,090 $68,146 63.0% Change
$23,603 $19,854 84.1% Minor Kitchen Remodel $21,695 $15,790 72.8% Change
        
        
       
$195,228 $141,181 72.3% Two-Story Addition $165,243 $107,338 65.0% Change
        
        

 Currently under construction an entire remodel of an existing 2000 sqft home, complete renovation of all bathrooms, kitchen being changed out to all wood cherry-wood, 3 complete bathrooms, all floors being tiled, addition of 800 sq ft. new roof, stamp concrete, engineering, plans, appliances, custom book cases etc etc. for under 200,000, project completion estimated to be end of May 2012.      

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