Home Remodeling Costs Vs. Value
Don't lose equity in the process!
National Information (by State)
Remodels Resources that Pay Off
Midrange remodeling projects
Upscale remodeling projects
Misc. Resources Not Included Elsewhere
The National Association of Realtors has written a Field Guide to Remodeling that includes research, statistics and housing indicators. Remodels may be financeable, and possibly tax deductible through second mortgages, and may or may not be covered by the current home warranty. It is important to carefully check both the home warranty for exact coverage, as well as the documents associated with the second mortgage to see exactly what tax deductibility, and insurance coverage will be availability for the remodel.
- Economists Outlook 30-Year Fixed Rate Mortgage in the U.S
- U.S. Economic Outlook for February 2014: includes annual rate of growth, percent of mortgage and interest rates, and median home prices
- National Association of Home Builders: Remodeling Market Index Graphs
- Trends in Home Improvement Spending according to BuildersShow.com
- 2014 Regional Comparison in Household Remodeling Trends according to Remodeling.net
- Remodeling Trend Statistics according to Remodeling.net, by year and region:
- East North Central region home remodel statistics
- Pacific region home remodel statistics
- East South Central region home remodel statistics
- South Atlantic region home remodel statistics
- Middle Atlantic region home remodel statistics
- West North Central region home remodel statistics
- Mountain region home remodel statistics
- West South Central region home remodel statistics
- New England home remodel statistics
- Chicago, IL
- Detroit, MI
- Cincinnati, OH
- Cleveland, OH
- Dayton, OH
- Grand Rapids, MI
- Indianapolis, IN
- Madison, WI
- Birmingham, AL
- Jackson, MS
- Knoxville, TN
- Louisville, KY
- Albany, NY
- Allentown, PA
- Philadelphia, PA
- Albuquerque, NM
- Billings, MT
- Boise, ID
- Anchorage, AK
- Sacramento, CA
- Los Angeles, CA
- Seattle, WA
Consumers should consider what buyers want when remodeling, to better the odds of their remodel producing a return on investment. For example, according to ThisOldHouse.com, renovations to kitchens and bathrooms are far more likely to produce a return on investment than the installation of a pool.
The following resources shed light on how homeowners can choose house-remodeling projects that are likely to pay off in the long run:
- RealEstate.msn: 10 Remodeling Projects that Pay Back the Most
- Kiplinger.com: Remodeling that Pays Back
- Investopedia: Will Your Home Remodel Pay Off?
- CNN Money: 6 Ways to Ensure a Remodeling Project Pays Off
- Better Homes and Gardens: Remodeling Projects that Pay Off
- Home and Garden Television: Which Home Improvements Pay Off?
- Yahoo Homes: Home remodeling projects that pay you back
- US News: Renovations that Yield the Best Return on Investments
- Bankrate.com: Biggest Bang for your Home-Improvement Buck
- Forbes: Best and Worst Home Improvements for the Buck
- Lowe's: Repair and Restoration Return on Investment
- Top Ten Midrange Remodeling Projects according to the National Association of Realtors:
- Replacing the Entry Door: Average Cost Recouped: approximately 86%
- Installing Wooden Decking: Average Cost Recouped: approximately 77%
- Minor Kitchen Remodeling: Average Cost Recouped: approximately 75%
- Replacing Wooden Windows: Average Cost Recouped: approximately 73%
- Adding an Attic Bedroom: Average Cost Recouped: approximately 73%
- Replacing Vinyl Siding: Average Cost Recouped: approximately 73%
- Remodeling the Basement:Average Cost Recouped: approximately 70%
- Top Ten Upscale Remodeling Projects according to the National Association of Realtors:
- Major Kitchen Remodel: Average Cost Recouped: approximately 69%
- Adding a Composite Deck: Average Cost Recouped: approximately 68%
- Replacing the Garage Door:Average Cost Recouped: approximately 76%
- Replacing Foam Backed Vinyl Siding: Average Cost Recouped: approximately 72%
- Replacing Vinyl Windows: Average Cost Recouped: approximately 71%
- Replacing the Grand Entrance with fiberglass: Average Cost Recouped: approximately 64%
- Remodeling the Bathroom: Average Cost Recouped: approximately 58%
- Replacing the Roof: Average Cost Recouped: approximately 57%
Guides for hiring contractors:
- CBS News: 3 Rules for Hiring Contractors
- National Association of the Remodeling Industry: Most asked questions of home improvement contractors include logistics, such as how long a project will take, recommended questions like requesting a copy of a contractor's references, and queries about cost.
- How Stuff Works: 10 Questions to Ask a Prospective Contractor
- Massachusetts Consumer Affairs and Business Regulations: legal information on home improvement contracting as well as contractor registration lookup, required contract terms, consumer guide to home improvement contractor complaints and contractor arbitration program.
- Homeadvisor.com: sample contracts for home improvement projects of all sizes
- RocketLawyer.com: free remodeling contract for homeowners and contractors alike to utilize for house remodeling projects of all kinds
- HouseLogic.com: statutes and language recommendations to include in home remodeling contracts
- WikiHow: How to Write a Home Improvement Contract in 16 steps, from acquiring permits to laying out exactly what materials the homeowner and contractor will each provide.
- Construction-Forms.net: blank pdf of a remodeling contract
- Home Improvement Guide from Consumer Reports: Materials and practice advice for home remodeling projects
- DIY Network: Home improvement projects and how-to instructions, such as:
- Better Homes and Gardens: Improve your home with 30 DIY weekend projects
- Huffington Post: DIY home improvement projects for less than $10 apiece
- FamilyHandyMan.com: Do-it-yourself home improvement and repair projects
- The US Housing Stock "Ready for Renewal" report, written by the Joint Center for Housing Studies at Harvard University, outlines trends and spending on home improvement over time, and average annual per-owner improvement spending.
- National Residential Improvement Association, which provides consumers with resources for government-sponsored home improvement programs.
- National Association of the Remodeling Industry, established in 1983, offers homeowner guides, remodeling tips, warning signs, and resources to assist consumers with finding remodelers.
- Realtor Magazine offers an assessment of cost versus value on home improvements.
- About.com provides a list of estimated remodeling costs for basement, bathroom, and other areas of the house.
- CNN Money's guide to checking home improvement costs and crunching the numbers.
The information in this article is intended to provide guidance on the proper maintenance and care of systems and appliances in the home. Not all of the topics mentioned are covered by our home warranty or maintenance plans. Please review your home warranty contract carefully to understand your coverage.