Friday, July 11, 2014

Is it worth it to remodel?

Have you been thinking about remodeling and wondering whether or not it's worth it?  First you might want to do a cost-benefit analysis. This analysis is simply a compilation of the costs of a project compared to the benefits you will receive once the project is complete.

The costs of a project are mostly objective, it's the cost of the material and labor required to complete a project.  The benefits, however, are both objective; How much increase in value will my home see as a result of this remodel?, and subjective; How much will this remodel benefit me and my family in terms of convenience, enjoyment or comfort?

Only you can determine the subjective value of a remodeling project but the folks at Remodeling magazine have done a great analysis of the objective cost of a variety of projects for you.  You can download your copy of the Denver report here, Cost vs Value Report, for other areas of the country go here, www.costvalue.com

Here are a couple examples:

A remodeling project like replacing the siding on your home with cement fiberboard siding may not provide you or your family a big increase in comfort, convenience or enjoyment BUT according to the Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com), it has a great return on investment.  If you choose to replace your existing siding with high quality cement fiberboard siding you will spend $13,250 and increase the value of your home by $13,560 which is a 102.3% return on investment!  So if your siding is in need of replacement this choice is easy.

Finishing your basement will likely provide you and your family a significant increase in enjoyment, convenience and comfort.  According to the Cost vs Value Report a basement remodel will cost you $62,131 and will increase the value of your home by $49,082 which is a 79% return on investment (for every $1 spent you get $0.79 in return).  If you're planning on staying in your home for a while, need additional space to accommodate a growing family or want a more comfortable home, the decision to remodel the basement is likely a good one.  If you're planning on putting your home on the market in 6 months, you might want to reconsider.



Check out the report to see how remodeling might benefit you.

“© 2014 Hanley Wood, LLC. Complete data from the Remodeling 2014 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.”

1 comment:

  1. Basement Finishing Videos teaches you how to finish basement.If you are looking for basement finishing cost then basement finishing videos would help you.How to frame a basement to how to finish a basement , such questions would be solved.

    ReplyDelete

Note: Only a member of this blog may post a comment.