2002 Cost Vs. Value Report: Two-story addition

2002 Cost vs. Value Report

Two-story Addition
People usually add on in order to stay put, points out Kerry Butler, owner of Butler Construction Services, a full-service remodeling company in Kelso, Wash. “They like the neighborhood, the school district. They’ve looked at newer, larger homes and have decided to invest in the home they have and stay in the neighborhood.”

Still, if they eventually decide to sell, the extra space—a six-bedroom house where most homes have four—will appeal to buyers with large families and those planning to convert those extra rooms to something else, say a home office. “It’s the bedroom and bathroom additions where people get the most bang for their buck,” says Todd Perry, of Leading Edge Homes in Wellington, Fla., whose company specializes in additions.

Real estate salespeople agree, estimating this project would recoup 94 percent on average nationally. In dense areas, such as Chicago, New York City, San Francisco, and Washington, D.C., an addition will likely return even more—111 percent, 117 percent, 126 percent, and 112 percent, respectively, according to real estate pros in those areas.

PROJECT DESCRIPTION

Add a 24-by-16-foot two-story wing with a first-floor family room and second-floor bedroom with full bath over a crawl space. In the family room, include a prefabricated gas fireplace; an atrium-style exterior door; carpeted floors; painted drywall on the ceiling and walls; and painted trim. In the 5-by-8-foot bathroom, include a one-piece fiberglass tub-shower unit; standard white toilet; wood vanity with ceramic tile countertop; resilient vinyl flooring; a mirrored medicine cabinet with built-in light strip; papered walls; and painted trim. Add a new heating and cooling system to handle the addition. Install 11 3-by-5-foot double-hung, insulated windows.

Market	Job Cost		Resale Value		Cost Recouped
National Average		$69,857		$65,524	94%
Atlanta		64,487		62,840	97
Boston		79,520		79,765	100
Buffalo, N.Y.		68,729		59,320	86
Chicago		81,448		90,436	111
Cincinnati		69,708		55,701	80
Cleveland		74,298		61,360	83
Columbus, Ohio		67,926		30,689	45
Dallas		62,290		43,073	69
Denver		65,190		49,980	77
Detroit		72,823		59,949	82
Houston		65,197		45,400	70
Indianapolis		68,316		56,000	82
Kansas City, Mo.		68,746		48,738	71
Los Angeles area		77,160		100,301	130
Los Angeles		78,194		120,121	154
Orange County, Calif.		76,125		80,480	106
Miami		61,202		58,750	96
Milwaukee		74,562		66,943	90
Minneapolis		84,529		87,258	103
New Orleans		60,196		45,154	75
New York area		76,084		89,298	117
Passaic, N.J.		77,514		60,000	77
Nassau-Suffolk, N.Y.		80,045		94,009	117
Fairfield-New Haven, Conn.		70,694		113,885	161
Norfolk, Va.		40,294		36,250	90
Orlando, Fla.		61,129		42,537	70
Philadelphia		75,755		81,878	108
Phoenix		66,315		40,000	60
Pittsburgh		70,755		54,250	77
Portland, Ore.		71,710		60,000	84
Providence, R.I.		71,546		57,000	80
Sacramento, Calif.		76,705		73,750	96
Salt Lake City		61,562		51,000	83
St. Louis		74,494		55,167	74
San Antonio		60,913		54,111	89
San Diego		74,885		76,250	102
San Francisco area		84,310		106,427	126
San Francisco		84,310		119,100	141
Oakland, Calif.		84,310		93,754	111
Seattle		75,355		68,817	91
Tampa, Fla.		58,165		45,750	79
Washington, D.C., area		61,403		69,007	112
Washington, D.C.		65,660		116,667	177
Baltimore		61,928		46,353	75
Richmond, Va.		56,622		44,000	78