Originally published 2/14/2019
Remodeling value 2019
This month we take a look at the value of remodeling projects and your home. Many homeowners are considering a remodeling project in order to increase the enjoyment of their home. Often these projects are undertaken with an eye towards increasing the resale value of the home as well. You may be considering making an improvement to your home and wondering how much more you will make when you get ready to sell your home.
Every year, Remodeling Magazine conducts a national survey of remodeling projects to see what financial return the projects will provide. The report is broken down by region, state, and major city. For the seond year, Savannah has been included as one of the cities in the report.
In this year’s report, there are 4 project types that return over 90% of their cost at resale time.
The highest returning project for this year is for installing a manufactured stone veneer, which returns 109% of the cost, down from 118% last year. This project involves replacing the bottom third of the existing vinyl siding on the front of the house with a stone veneer. Next up is replacing your garage door which returns just over 100% of the cost, down from 161% last year. (Last year replacing your garage door was number 1.) Number 3 is vinyl window replacement, which returns 94% and replacing your siding returns 91%. The top 4 projects for our area last year were garage door replacement, manufactured stone veneer, siding replacement, and adding a wooden deck. The full report lists 22 different project types covering everything from bathroom additions to replacing your roof with a new, metal roof.
When considering a home improvement project, there are more things for you to consider than just the impact on resale value. First, the project returns change every year. For example, 2 years ago, the highest return project was adding insulation to your attic, which gave a return of 123.3% for our region. (Savannah wasn’t separated out until last year.) A project that makes you money this year may not when it comes time to sell.
A second factor to consider is whether or not you can do the project yourself. Right now, skilled labor is running around $45 or $50 an hour per person in Savannah. For many projects, the labor cost is the larger component of the total cost. If you have the time and the skills, doing a project yourself will save you considerably on the total cost, dramatically changing the return on investment (ROI) for your project. (It will also give you a good excuse to buy more tools!) If you do choose to undertake a project on your own, there are a variety of resources to help you learn how, including websites, books, and YouTube videos. Home Depot and Lowes offer free training seminars on a variety of home improvement projects. Please contact your city permitting department to find out if any permits or inspections are required for the project you are considering. If the project you want to do involves digging, be sure to call in a free locate request to have any utility lines marked before you start. If you accidentally cut into a buried power or gas line, you will not be a happy camper! Consider carefully how much time the project is going to take you. It WILL take you longer than you expect. No, really. A helping hand or two will speed things up considerably. Do you have any friends that you can enlist or bribe to help you? Pizza and wings powered labor will cost you much less than a contractor!
Finally, remember that this is about more than just money. This is YOUR home. This is where you live, where you come home to every day. It is important that you enjoy your living space. If you really enjoy outdoor entertaining for example, then go ahead and put in that outdoor kitchen. You can’t put a dollar value on good times with your family and friends.
The National Association of Realtors (NAR) also produces a remodeling impact survey. The NAR report also considers homeowner enjoyment as well as financial return. NAR assigns a Joy score to the projects listed in their report. According to the 2019 NAR report, bathroom renovations, kitchen upgrades, and kitchen renovations all had Joy scores over 9.
As always, if you are curious about the current value of your home, or if you need recommendations for a handyman or contractor to quote a project for you, the Daniels Team is here to help you.
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