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2000 Cost vs. Value report
For reports on the following four additional remodeling projects, see “Cost vs. Value” at www.realtormag.com.
You’ve got a nice listing that would be a great catch--with a little fixing up. On another listing, the sellers are thinking of redoing the kitchen before they officially put their house on the market. The buyers of the first property and the sellers of the second have the same two questions: How much will remodeling cost? And how much of the cost can we get back in a resale? Helping you answer these questions is what this “2000 Cost vs. Value Report” is all about. Compiled by Remodeling magazine and published annually in REALTOR® Magazine through an editorial partnership, the study compares the cost of and expected return on 10 popular home improvements, six of which we present here: a minor kitchen remodel, two-story addition, bathroom addition, bathroom remodel, family room addition, and exterior painting. The other four projects are online at www.realtormag.com. The “Cost vs. Value Report” is the result of interviews with 300 real estate salespeople and appraisers representing 60 different market areas. They were asked the percent of cost they thought would be recouped on each project if the house were sold within a year. Bear in mind that return on investment in remodeling can vary widely depending on the home and neighborhood. Real estate professionals who participated in this study say popular projects such as kitchen and bath remodels remain a solid investment for homeowners. The minor kitchen remodel was rated as the most likely to return value for cost. HomeTech, the Maryland-based construction software publisher that supplied estimates on all of the projects, says the kitchen remodel would average about $14,847 nationally. Survey participants say the project would retrieve some 88 percent of that cost. Respondents rated the two-story addition second most valuable. The cost estimated by HomeTech is $67,743; our survey participants say it would bring back 84 percent. Check out the expert comments that go with each project. John Duncan, an architect with Moon Brothers, a design/build remodeling firm in Atlanta; Pam Enz, an interior designer with M/A/Peterson in Edina, Minn.; and Ron Roell, owner of Ron Roell Interior Remodeling Specialist in Cincinnati, offer tips on getting the most value from the projects. Pass their ideas on to customers who have renovation on their minds. Editor’s note:Remodelingmagazine, published by Hanley-Wood LLC, Washington, D.C., has been publishing the “Cost vs. Value Report” annually for more than a decade. We’d like to thank the editors and designers at Remodelingand the contributors listed on page 64 for helping us bring this report to you. Remodeling magazine’s “Cost vs. Value Report,” © 2000, by Hanley-Wood LLC. Republication or redissemination of the report is expressly prohibited without written permission of Hanley-Wood LLC. See page 57 for information about ordering reprints. Minor kitchen remodel Homeowners who can’t afford to tear out their kitchen and start from scratch can still give it a fresh, clean look. If they replace floors, countertops, and cabinet facings, install a new oven and cooktop, and add a coat or two of paint, they’ll spend a fraction what they’d spend on a full-fledged remodel--and they’ll see a greater return on their investment to boot. “To really gut a kitchen, you have to throw a lot of money in there,” says Iowa real estate practitioner Ray Dennis. But with the facelift, he says, “you can go from a dungeon to something that’s pretty presentable without spending a lot of money.” How much? HomeTech estimates the cost of the job specified below at $14,847 as a national average. For the money, minor kitchen remodels return more--88 percent--than any of the other projects in the Cost vs. Value survey. Still, the national figure would be a Bay-area bargain. In San Francisco a kitchen makeover runs nearly $19,000. That sounds like a lot until you consider that it’s likely to return 147 percent of cost ($27,800) in resale. DESIGN TIPS FOR CONSUMERS
Two-story addition An addition of this size is costly and risky but potentially more rewarding than any other kind of remodeling activity. It’s costly, as confirmed by HomeTech, which estimates that the project as described would run $67,743 (and the price would be much higher in markets such as Honolulu, $87,509, or San Francisco, $85,255). It’s risky because the new addition could end up looking like what it is--an addition. Only careful design and seamless execution make this pricey piece of work pay off at the settlement table. Real estate pros suggest that, based on a nationwide average, the two-story addition would fetch 84 percent of cost in a resale, about $56,770, making it the second most value-enhancing of the projects in this year’s survey. DESIGN TIPS FOR CONSUMERS
Bathroom addition Today’s homeowners are used to having a bathroom on every floor. “Two and a half baths is pretty much a necessity,” says Tennessee real estate pro Margaret Fraser. “Buyers like one for the master and one for the children, with a half-bath downstairs.” So it’s tough to convince potential buyers of the virtues of a house that has only one full bath, whatever those virtues might be. Adding a bathroom inside existing space can be done for $14,216, estimates HomeTech. From an investment standpoint, bathroom additions are one of the smartest projects to undertake, because, averaged nationwide, homeowners can recoup 82 percent of that investment, and in fast-appreciating real estate markets like San Francisco or the well-heeled Westchester County suburbs of New York, they can do considerably better than that. Texas real estate practitioner Irby Roselle advises sparing no expense. “When it comes to the bathroom, the grander it is, the more people like it,” he notes. DESIGN TIPS FOR CONSUMERS
Bathroom remodel Nothing kills a sale faster than the faded beauty of yesteryear’s bathroom, unless, of course, it’s the faded beauty of yesteryear’s kitchen. “Kitchens, baths, and mechanicals,” Columbus, Ohio, appraiser Charles Pavey says. Those are what buyers check out first. Kitchens and bathrooms “date” more rapidly than the rest of the house. And after kitchens, bathrooms cost more to remodel per labor-intense square foot than any other room. HomeTech estimates it would cost $9,748 to remodel the 5-by-9-foot bathroom described. For value returned, that project ranks behind the minor kitchen remodel and the two-story addition, and equals the (pricier) bathroom addition. Real estate pros put return on investment at 82 percent nationwide ($7,952), though some markets report substantially higher returns. Among them are Providence, R.I., where professionals estimate a 127 percent return ($12,625) on a $9,964 project. In the white-hot San Francisco market, a $12,604 bath remodel is estimated to bring back $19,100—152 percent. DESIGN TIPS FOR CONSUMERS
Family room addition Want to increase square footage? Add a family room. Homeowner uses for the room change over the years as the kids grow up, but the room itself never outlives its usefulness. “Five years from now, that remodeled kitchen is going to be an old kitchen,” Florida real estate appraiser Reginald Carter points out. “A third of its life expectancy will be used up. With a family room, at least you have the square footage.” Real estate professionals say the functional flexibility of the family room excites the imaginations of buyers. “If you have one with a fireplace and a wet bar, or room for a big-screen TV and pool table, buyers envision this grand party they’re going to have and the romantic evenings by the fireplace,” Michigan real estate pro Cecily Bliesath says. HomeTech estimates the national average cost of building a family room at $47,764. Real estate pros say it will bring back $36,169, or 76 percent of cost. DESIGN TIPS FOR CONSUMERS
Exterior painting Jacksonville, Fla., real estate pro Kathy Shirley says she can tell in seconds which clients maintain their home and which don’t. The well-maintained home is always freshly painted. Besides protecting wood from the elements, paint provides a tremendous boost to eye appeal by making an old house look like it just took a shower and washed its hair. “Sixty percent of home sales are made before anybody even steps out of the car,” says Cincinnati remodeler Ron Roell. “Your floor plan means about 40 percent.” Painting also provides an opportunity to make a statement with color. “You can take some chances and do fun things with it,” architect John Duncan of Atlanta-based Moon Brothers says. HomeTech estimates the national average cost of painting a two-story house at $8,336. Real estate practitioners and appraisers suggest that a homeowner would recoup a healthy 75 percent of that--$6,233—in resale. DESIGN TIPS FOR CONSUMERS
CONTRIBUTORS . . . Resale values for the “2000 Cost vs. Value Report” were estimated by the following real estate sales and appraisal professionals. REALTOR® Magazine is grateful for their assistance. EAST ALBANY, N.Y. Nina Amadon, Noreast Real Estate; Phyllis Barbera, Realty USA; Walter Kresge, Albright-KresgeBALTIMORE Robert M. Cushner, RMC Appraisal Services; Hank Edwards, Coldwell Banker Grempler; Daisy Jackson, Century 21 H.T. Brown Real Estate; Paul Lee, Paul E. Lee & Associates BOSTONSidney Goldenberg, Coldwell Banker Hunneman; Judy Leonelli, Century 21 Millennium; David Thomas, Citystate LLC Real Estate BURLINGTON, VT. Carol Audette, Bruce Hewett, and Carol Kinkel, Lang Associates; Hugh R. Bemis, Bemis Appraisal Service; Fred Blais, Fred Blais Appraiser GARDEN CITY, N.Y. Dougall Fraser, Dougall C. Fraser Jr. Inc.; Anne Hagen, Village Properties; Sandra Jaenichen, Stutzmann Realty; John Pastula, John Pastula Real Estate; Diane Sammarco, Diane Sammarco Realty HARTFORD, CONN. Cathy Donnelly, Realty Three Carroll Agostini; Ernest B. Gilmour, Ernest B Gilmour Agency; Vince Lapenta, ERA Sargis Breen; Jose Reategui, Rego Realty LANCASTER, PA. Mary Clinton, Appraisal Associates; C. David Ruff, Century 21 Neighborhood Realty; Earl Shirk, Realty 1 NASHUA, N.H. Denise Barry, Top Sell Realty; Richard H. Dube, GRI, Prudential Crain; Angeline Kopka, Kopka Real Estate; Phil Langelier, Century 21 Cardinal; Jocelyn Lavoie, Carlson GMAC Real Estate NEW HAVEN, CONN. Rob Backhaus, William Raveis Real Estate; Roe Curtis, Curtis-Long Associates; Janet Gall, Southbury Associates; John Gomes, Calcagni Real Estate; Michael Johnson, Taj Real Estate; Barbara Schmerzler, US Homefinders PASSAIC, N.J. Beverly Borsi, Hillcrest Realty; David Fanale, Century 21 Eudan Realty; Ilona Shami, Weichert. REALTORS®; Maryann Taormina, Century 21 Gold Key; Carol Viola, Century 21 ACV Real Estate Associates PHILADELPHIA Carol Alton, Prudential Fox & Roach; Jim Colahan, RE/MAX Eastern; Tracy Meyers, Paul W. Meyers; Hal Solar, Homemart Real Estate; Deborah Solo, Solo Real Estate PITTSBURGH Terri Kulzer-Love, Kulzer & Co; Craig Malitz, Bodnar Real Estate; Joe Moore, Nationwide Appraisal; Lou Spartis, Spartan Realty & Appraisal; Kevin Williams, Century 21 St. Clair PROVIDENCE, R.I. Robert Rondeau, Century 21 Rondeau; Michael Saccoccio, Century 21 Alliance; Robert Scaralia, RE/MAX 1st Choice; Michael Young, Coleman, REALTORS® WESTCHESTER, N.Y. Mary Ellen Bickler, Brown-Bickler & Co.; Gene Endres and J.P. Endres, David Endres Realty; Richard Ferrarone, Landmark Appraisal; Angel Messenger, Claire D. Leone Associates; Pat Warnken, Prudential Centennial WILMINGTON, DEL. George Allen, Allen Appraisal; Steven Sachs, Steven Sachs Appraisal Access; Steve White, First State Appraisals; Steven Witsil, Witsil, REALTORS® SOUTH ATLANTA Virginia Bellew, Harry Norman. REALTORS®; William McDaniel, Black Acre Realty; Jim Ware, Northside Realty BIRMINGHAM, ALA. Tom M. Horton Jr., Horton Appraisals; T.L. Inman, Inman Real Estate-Apprasials; Ari Lee, Avenue of Homes; Peggy Ogilvie, Realty South; Jan Watts, Watts Residential SalesCOLUMBIA, S.C. Reid Coope, Century 21 Bob Capes, REALTORS®; Carl Durham, C&S Appraisal; Linda Gentry, Linda Gentry Real Estate; Jill Moylan, Home Advantage Realty; Susie Satterfield, Coldwell Banker Tom Jenkins Realty DALLAS-FORT WORTH Ken Lampton, RE/MAX Associates; Greg Pape, Abio & Associates; John Scarborough, Crosson Dannis Inc. HOUSTON Frank Dyer, Reliance Appraisal; Betty Leffler, Texas Flagship Property; Irby Rozelle, Coldwell Banker Madeline O’Brien, REALTORS®; Ken Verrett, Acorn Appraisal; Charles Wade, J. E. Elliott Co. JACKSONVILLE, FLA. Reginald M. Carter, Carter Appraisals; Jim Manken, Manken Appraisal; Albert Schall, A. Schall, REALTOR®; Kathy Shirley, Kathy Shirley, REALTOR®; James Torro, Broom, Moody, Johnson & Grainger KNOXVILLE, TENN. Donny Ellis, Ellis Appraisal; Margaret Fraser, Fraser Properties; Dave Santi, RE/MAX Preferred Properties; Robert W. Tipton, Tipton & Associates Realty; Sandra C. Tuck, Donald White & Associates LOUISVILLE, KY. Saul Anhouse, MJA Inc.; Steve Degaris, Edelen & Edelen, REALTORS®; John Marshall, Elite Homes & REALTORS®; Kris Mueller, Mueller Appraisal; Tim Powers and Darrell Weaver, RE/MAX Properties East MIAMI Susan Alters, Alters Appraisal; Carlos Chaux, Unicasa Group 2000 Realty; Stephen Maltagliati, Appraisalworks; Ann Meng, Buy The Beach Realty; Niurka Serpa, Serpak Group NEW ORLEANS John Clancy, John Clancy Appraisal; Michael Malone, Malone Real Estate; Walter Marschner, Jefferson Parish Appraisal; Al Palumbo, Latter & Blum; Mark O. Rodi, RE/MAX Affiliates; Martha Ann Samuel, Martha Ann Samuel Inc. RALEIGH DURHAM, N.C. Freddy Divallerino and Larry Pulley, Howard Perry & Walston; Kay Galvin, York Properties; Gilbert Hensgen, Hodge & Kittrell, REALTORS®; Bob Mulder, Birch Appraisal RICHMOND, VA. Lummie Jones, Napier Old Colony, REALTORS®;Martha Jo Lanier, Appraisal Associates; Jack Paganelli, Coldwell Banker; Chris Quidort, Appraisal Network of Va.; John Saunders, Central Virginia Appraisal Service; Bill Steele, Virginia Realty and Relocation TAMPA, FLA. Robert Gadson, Bob Gadson Realty; Glenna Rubin, Coldwell Banker Residential Real Estate; Mark Silverstein, Pardue, Heid, Church, Smith, & Waller TULSA, OKLA. Barbara Edson, Edsonian, REALTORS®; Peggy German, Greater Metropolitan; Rich Howse, Rich Howse Inc.; Timothy B. Smith, Century 21 Procorps WASHINGTON, D.C. Barbara Abeille, Pardoe ERA Real Estate; Donna Evers, Evers and Co.; Archie Harders, McEnearney Associates; Yolanda M. Mamone, Randall H. Hagner & Co.; Mary Lou Shannon, Long and Foster Real Estate MIDWEST CHICAGO Cam Benson, Coldwell Banker Residential Brokerage; Mary Callahan Ziebell, Coldwell Banker Sprafka; Bob Johnson, Johnson Appraisal and Consultant; Jack Sartore, Adams & Myers, REALTORS®; Howard Wilcox, The Wilcox Co. CLEVELAND Reginald T. Evans, RTE Appraisal; John Lynch, Lynch & Co.; Kay McNabb, Realty One; Judy Patriski, Patriski & Associates; Robert Ray, Ray Appraisal COLUMBUS, OHIO James M. Dunn, James M. Dunn Appraisals; Thomas Francis, Real Property Analysts; Ned Merkle, Ned Merkle & Co., REALTORS®; Charles Pavey, Charles Pavey Appraiser; Gary Schmitz, Teamnet Realty DES MOINES, IOWA Linda Busick, CAA Appraisal; Calvert Appraisals; Frank Debartolo, Frank Debartolo Appraisal; Ray Dennis, Coldwell Banker Mid-America; Don Godwin, RE/MAX Real Estate DETROIT Cecily Bliesath and Laverne Rusk, Century 21 Town & Country; Doug Mason, Coldwell Banker Preferred, REALTORS®; Creighton Smith, Creighton Realty; Oliver Walker, All World Appraisal FARGO, N.D. Dick Arman, RE/MAX Realty One; Rocky Bertsch, Advantage, REALTORS®; Dan Madsen, Metro, REALTORS®; Ron Rheault, Town & Country; Dewey Uhlir, Park Co., REALTORS®, Better Homes & Gardens; Mark Vanyo, Coldwell Banker 1st Realty Encore GRAND RAPIDS, MICH. Greg Carlson, Gregory R. Carlson 5-Star Real Estate; Brian Jablonski, Greenridge Realty; John Meyer, John A. Meyer Appraisal; Tina Sprich, Fletcher Realty; Pat Vredevoogd, AJS Realty; John Westman, Westman Realty INDIANAPOLIS Sarah Huff, F.C. Tucker Co.; Dan Moriarty, RE/MAX Preferred, REALTORS®; Greg Spudic, Spudic Real Estate Services; Bryan Truex, Truex Appraisal; William Weesner, Weesner Appraisal; Robert Zachidny, Zachidny Appraisal KANSAS CITY, MO. Edgar Barth, Recreational Properties; Dan Carter, Prudential Carter Associates, Realtors®; Robert Conn, Flood Conn Enterprises; Don Gossman, Gossman & Associates; Cecil Monteil, The Yarco Co. MADISON, WIS. Nancy Benzschawel, Restaino Bunbury & Associates, REALTORS®; John Clark, Clark Appraisal; Jon Grinde, James R. Imhoff Jr., and Dick Malsch, First Weber MILWAUKEE Nancy Carpenter, Ogden & Co.; Scott Kuesel, Century 21 Alliance; Dan Schley, Appraisals By Schley MINNEAPOLIS Pat Hogan, Virtual Realty Associates; Roxanne Skildum, Coldwell Banker Burnet; Steven Smith, Proforce Corp.; Jim Tice, Century 21 Luger SIOUX FALLS, S.D. David Anderson, Century 21 Realty Center; Brenda Clow, Dunham Co.; Jay Hoover and Julie Job, RE/MAX Professionals ST. LOUIS Alice Armstrong, People’s Choice; Janis Freeman, Prudential Alliance, REALTORS®; Beverly Kraus, Coldwell Banker Ira E. Berry; Jody Miller, Gundaker, REALTORS®, BH&G; Bob Mitchell, ValueList Real Estate Svc. WICHITA, KAN. Joe Debbrecht, RE/MAX Realty Centre; Margaret Dewitt, Realty Executive Center; Tom Elson, J.P. Wiegand & Sons; Don Rider, Rider, REALTORS®; Joe Schloegel, RE/MAX State Line Real Estate WEST ALBUQUERQUE, N.M. Karen Cuellar, Almy Appraisal; Robert Martinez, Sunstar Associates, REALTORS®; Mary Jo Sarason, Unica Real Estate; Leonard Torres, Vaughan Co., REALTORS®; Ron Voris, Voris & Associates BOISE, IDAHO Jim Dawson, Dawson Residential Appraisal Services; Mike Gamblin, Mike Gamblin Real Estate; Steve Herrick, Homeland Realty; Allen Jones, McLeod Realty; Tom Rhodes, The Village Co. COLORADO SPRINGS, COLO. John Davis, John L. Davis & Associates; Mike Garrett, Affiliated Appraisers; Don Loedding, Broadmoor Agency; Terry Pixley, T.G. Pixley; Frank Howard, Heritage, REALTORS® DENVER Arthur Alarcon, ARA & Associates; Jim Alenius, Coldwell Banker Moore; Mark Bustamante, Cliffdwellers Real Estate; Art Klinowski, Majestic Appraisal; Gary Meredith, Appraisal With A Mountain View HONOLULU Flemming H. Carstensen, Flemming H. Carstensen, REALTORS®; Nathan Dement, The Appraisal Co.; John Kobayashi, VIP Investment; Kathy Lau, K.M. Lau & Associates; Peter Savio, Savio Realty LAS VEGAS, NEV. James Beasley, Spanish Hills Realty; Richard Graham, Richard Graham; Nick Martella, Eldorado Realty; Charles Osgood, RE/MAX Central; Ronald Ruthe, Excel Realty LOS ANGELES Melvin Grimes, Goldminers Realty; John Pentacost, Century 21 Adams & Barnes; Eileen Rodell, Century 21 Select PHOENIX Howard Bickerdyke, ERA Encore; David Jarnagin, Jarnagin Appraisal; Sue Miller, Sue Miller & Associates; Alex Robayo, RE/MAX Integrity PORTLAND, ORE. Yvonne Davis, Equity Group; Glenn Farrell, John L. Scott Real Estate; Peggy Hoag, Prudential Properties; Kay Pavey, Kay Pavey Property; Risa Wonsyld, Windermere Glenn Taylor Real Estate SACRAMENTO, CALIF. Ken Hunsinger, Hunsinger Realty; Walt Santwer, Benefit Real Estate; Steve Walker, Walker RealtySALT LAKE CITY Ray Bennett, Rushmore Real Estate; Vicki Fulkerson, Hidden Valley Real Estate; Scott Pexton, Chapman Richards; Sharon Young, Lakeshore Appraisals SAN DIEGO Sharon Bythewood, Bythewood Group; Daniel Dallenbach, Valley View Properties; Richard Kenyon, Kuleana Inc.; Roger Memering, Sold Realty; Jinny Ollis, Coldwell Banker Real Estate SAN FRANCISCO John Asdourian, McGuire Real Estate; Kent Brownlow, Brownlow Properties; Billy D. Graham, Graham & Co.; Raymond Kaliski, Lofts Unlimited; Bruce McKleroy, Ritchie Hallanan Real Estate SEATTLE Heather Brynn and Tom Denend, Windermere Real Estate-Vashon Island; George Johnson, George W. Johnson Realty; Neil MacDonald, Windermere Real Estate-Wall St.; Jim Pettigrew, RE/MAX Northwest, REALTORS® SPOKANE, WASH. Arend Dawson, A.A.A. Real Estate Appraisal Service; Bob Fluaitt, Prudential Crane Realty; Bob Knudsen, Spokane Realty; Dan Simpson, Simpson Realty; Bill Slater, Century 21 Advanta |
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