Home Remodeling Costs Vs. Value

Don't lose equity in the process!

OUTLINE

Reports Statistics
Regional Trends
National Information (by State)
Remodels Resources that Pay Off
Midrange remodeling projects
Upscale remodeling projects
Remodeling Contractors
DIY Resources
Misc. Resources Not Included Elsewhere

Reports Statistics

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.

Remodeling.net weighs the average cost for some of the most common home remodeling projects against the value that the completed product will gain in resale in over 100 cities around America.

The following links include remodeling statistics for Job Cost, Resale Value and Cost Recouped for 35 popular house-remodeling projects per year, according to Remodeling.net:

Regional Trends

National Information (by State)

Remodels Resources that Pay Off

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:

Midrange remodeling projects

Upscale remodeling projects

Remodeling Contractors

Guides for hiring contractors:

Sample Contracts:

  • 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

DIY Resources

Misc. Resources Not Included Elsewhere

  • 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.