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Tips and TrendsMarch 22, 2012

Sponsor

Justin Smith•Senior specialist, Lowe’s Program for REALTORS®•Lowe’s representative for more than five years

Speakers

HostsStacey Moncrieff and Brian Summerfield REALTOR® Magazine

Tips and Trends

Sal AlfanoEditorial directorHanley Wood Business Media•Remodeling•Replacement Contractor•The Journal of Light Construction•Coastal Contractor•Professional Deck Builder

Todd Wood•REALTOR® for more than 25 years; owner of RE/MAX Realty Services, Bethesda, Md.•Owner of Castlewood Custom Builders

What is it?

• 35 remodeling projects – midrange (M) and upscale (U)

• 80 U.S. cities

• National and regional data published each year by Remodeling magazine and covered in REALTOR® Magazine.

• Current and archival city data available online at www.costvsvalue.com

Where we get the numbers

Cost estimatesHomeTech Information Systems,www.hometechonline.com

Resale value estimatesNational Association of REALTORS®

members, www.realtor.org

Survey instrumentSpecpan, www.specpan.com

dated

Siding

Rank% Cost

RecoupedJobCost

Value at Sale

1 Siding replacement, fiber cement (U) 78.0% $13,461 $10,493

10 Siding replacement , foam-backed vinyl (U) 69.6% $14,274 $9,937

11 Siding Replacement, vinyl (M) 69.5% $11,729 $8,155

1. Fiber-cement siding (U)

Replace 1,250 square feet of existing siding with new fiber-cement siding, factory primed and factory painted. Include all 4/4 and 5/4 trim using either fiber-cement boards or cellular PVC.

Top 5

1. Fiber-cement siding (U)2. Entry door replacement, steel (M)

Remove existing 3-0/6-8 entry door and jambs and replace with new 20-gauge steel unit, including clear dual-pane half-glass panel, jambs, and aluminum threshold with composite stop. Door is factory finished with same color both sides. Exterior brick-mold and 2.5-inch interior colonial or ranch casings in poplar or equal prefinished to match door color. Replace existing lockset with new bored-lock in brass or antique-brass finish.

Entry doors

Rank% Cost

RecoupedJobCost

Value at Sale

2 Entry door, 20-gauge steel (M) 72.7% $1,238 $903

21 Grand entrance, fiberglass (U) 60.7% $7,488 $4,554

27 Entry door, fiberglass (M) 56.1% $3,536 $1,990

Top 5

1. Fiber-cement siding (U)2. Entry door replacement – steel (M)3. Attic bedroom (M)

Convert unfinished attic space to a 15-by-15-foot bedroom and a 5-by-7-foot bathroom with shower. Include a 15-foot shed dormer, four new windows, and closet space under the eaves. Insulate and finish ceiling and walls. Carpet floor. Extend existing HVAC to new space; provide electrical wiring and lighting to code. Retain existing stairs, but add rail and baluster.

Bedrooms

Rank% Cost

RecoupedJobCost

Value at Sale

3 Attic bedroom (M) 72.5% $50,148 $36,346

21 Master suite addition (M) 59.7% $106,196 $62,874

34 Master suite addition (U) 50.5% $227,178 $114,822

Top 5

1. Fiber-cement siding (U)2. Entry door replacement – steel (M)3. Attic bedroom (M)4. Minor kitchen remodel (M)

In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install mid-priced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.

Kitchens

Rank% Cost

RecoupedJobCost

Value at Sale

4 Minor kitchen remodel (M) 72.1% $19,588 $14,120

16 Major kitchen remodel (M) 65.7% $57,494 $37,785

25 Major kitchen remodel (U) 57.4% $110,938 $63,731

Top 5

1. Fiber-cement siding, upscale2. Entry door replacement – steel (M)3. Attic bedroom (M)4. Minor kitchen remodel (M)5. Garage door replacement (M)

Remove and dispose of existing 16x7-foot garage door and tracks. Install new 4-section garage door on new galvanized steel tracks; reuse existing motorized opener. New door is uninsulated, single-layer, embossed steel with two coats of baked-on paint, galvanized steel hinges, and nylon rollers. 10-year limited warranty.

Garages

Rank% Cost

RecoupedJobCost

Value at Sale

5 Garage door replacement (M) 72.1% $1,512 $1,087

6 Garage door replacement (U) 71.0% $2,994 $2,129

26 Garage addition (M) 57.2% $57,842 $33,089

32 Garage addition (U) 52.1% $86,347 $44,987

Top 5

Top 10 Projects

Rank% Cost

RecoupedJobCost

Value at Sale

1 Siding replacement, fiber cement (U) 78.0% $13,461 $ 10,493

2 Entry door replacement, 20-gauge steel (M) 72.7% $1,238 $ 903

3 Attic bedroom (M) 72.5% $50,148 $ 36,346

4 Minor kitchen remodel (M) 72.1% $19,588 $ 14,120

5 Garage door replacement (M) 71.6% $1,512 $ 1,087

6 Garage door replacement (U) 71.0% $2,994 $ 2,129

7 Deck addition – wood (M) 70.1% $10,350 $ 7,259

8 Siding replacement, foam-backed vinyl (U) 69.6% $14,274 $ 9,937

9 Siding replacement, vinyl (M) 69.5% $11,729 $ 8,155

10 Window replacement, vinyl (U) 69.1% $14,328 $ 9,898

•$500 tax credit for energy-efficiency improvements expired 12/31/11.•Credit for geothermal heat pumps; residential wind turbines; and solar energy systems remains in effect through 12/31/16.30% credit with no upper limitExisting homes and new constructionPrincipal residences and second homes (rentals don’t qualify)

EnergyStar.gov (search “tax credits”)

Bottom 10 Projects

Rank% Cost

RecoupedJobCost

Value at Sale

26 Bathroom remodel (U) 55.5% $52,249 $28,972

27 Deck addition, composite (U) 54.6% $37,829 $20,637

28 Roofing replacement (U) 54.5% $37,481 $20,435

29 Bathroom addition (U) 52.6% $76,209 $40,061

30 Garage addition (U) 52.1% $86,347 $44,987

31 Bathroom addition (M) 51.0% $40,096 $ 20,455

32 Master suite addition (U) 50.5% $227,178 $114,822

33 Back-up power generator 47.5% $14,760 $7,009

34 Sunroom addition (M) 45.9% $74,310 $34,133

35 Home office remodel (M) 42.9% $27,963 $11,983

Why didn’t bathroom projects rank higher?

Bathrooms

Rank% Cost

RecoupedJobCost

Value at Sale

20 Bathroom Remodel (M) 62.2% $16,552 $10,293

28 Bathroom Remodel (U) 55.5% $52,249 $28,972

31 Bathroom Addition (U) 52.6% $76,209 $40,061

33 Bathroom Addition (M) 51.0% $40,096 $20,455

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Cost vs. Value data built in.

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The App

• Home remodeling tips: HouseLogic.com

• The data: CostvsValue.com.

Study the data and figure out what’s relevant to you.

Make it the starting point for a conversation with clients and customers.

Counsel customers with a long timeline.

Blog about interesting data points with a link to costvsvalue.com

Tweet interesting data points. Hashtag: #cvv

Copyright warning: Send clients to CostvsValue.com to download the data

Resources

2011-12 Cost vs. ValueData for 80 cities + downloadable PDFshttp://costvsvalue.com

REALTOR® Content ResourceHouseLogic’s free content resource on improving, maintaining and protecting the value of your homehttp://houselogic.com/members

Styled, Staged & Sold blog Includes coverage of the International Builders Show, January 2012http://styledstagedsold.blogs.realtor.org/

Lowe’s Program for REALTORS® http://LowesRealtorBenefits.com

Next Hot Topics Webinar:

“Court Side: 6 Recent Cases and What They Mean for Your Business”•April 19, 2012, 3 p.m. Eastern•http://REALTORMag.REALTOR.org/webinars

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