It’s time to talk about remodeling again. 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 past few years, Savannah has been included as one of the cities in the report.
There are some dramatic changes in this year’s report. This year, a midrange bathroom remodel returns 104% over the cost, as compared to 56% last year. A minor kitchen remodel returns 104%, up from 80% last year. We also saw some some significant declines. This year’s report shows an asphalt shingle roof replacement at 36%, down from 65% last year and a wooden window replacement at 56%, down from 80% last year.
As we’ve mentioned in years past, there are more things for you to consider than just the impact on resale value. First, as highlighted above, the project returns change every year. A project that makes you money this year may not when it comes time to sell. Also, if you look at the entire report, most projects return less than 100%.
Another thing to consider is doing the project yourself. Right now, skilled labor is running around $50 an hour per person in Savannah. Often, the labor cost is the larger component of the total. If you have the time and the skills, doing a project yourself will save 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 long a DIY project will take. It WILL take you longer than you expect.
BUT – 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.
References:
National Association of Realtors Report
Remodeling Magazine Cost vs. Value Report