I am showing a three bedroom house to a family with two children in a particular neighborhood today. This neighborhood always makes me think of remodeling.  I sold a three bedroom there to a family with two little girls.  Nine months or so later the buyer called me to say in celebrating their lovely new home they created child number three, a boy and were thinking of adding on a bedroom. He asked  would it be cost effective? 

He worded the whole story somewhat differently... especially the part about celebrating and  the ensuing pregnancy ... I sold him his first house as a bachaelor.  I still think of the pool in the backyard of one house we saw as a "babe magnet.."   He did not buy the house with the "babe magnet."  He has a way with words.

Anyway... family of four, they had been looking for a four bedroom but we looked at this house because it had a great back yard but now they were a family of five. I got them the Cost vs. Value Report that year.  I am not sure how seriously they pursued an addition.  Long story short, they sold the house within a couple of years and are in a BIG four bedroom...

This years "Cost vs. Value Report 2006" in Remodeling Online is out.  
 

We are the North East Central Area in the article, on the map... Looks like the Great Lake.. This is not Columbus.  The North East Central Area still has a lot of diversity...

Note there is a a very aggressive Dodge Truck ad...associated with the Remodeling Online article and charts... just keep closing it... unless you need a Dodge truck.  I think I'd buy a Ford after wrestling with this ad today....

The Remodeling Online article says:

"What's the payback for remodeling? Our annual report compares construction cost with resale value for 25 common remodeling projects in 60 U.S. markets."

"The 19th annual Cost vs. Value Report shows that prices continue to climb for most remodeling projects at the same time the value of improvements at resale returns to 2002 levels. None of this should come as much of a surprise to industry professionals, who have been riding the crest of the remodeling boom for several years, and this year's data confirm the housing slowdown many parts of the country are experiencing. Should you be worried? That depends on how fast and how far the housing market falls, but remember that both new construction and remodeling activity have been at record levels in recent years. Some adjustment is inevitable, but indications are that the current downturn represents a return to "normal" levels and that the prospects for remodeling remain bright (see "No Cause for Alarm").

"No Cause for  Alarm" and national figures as well as confidence levels for reporting region.  Confidence level is 7 % herein the North. 

North East Central  

 #'s are National Cost / Resale/ Cost Recouped then regional (North East Central) Cost / Resale/ Cost Recouped

Window Replacement (vinyl) $10,160 $8,500 83.7% $10,753 $8,751 81.4%

Siding Replacement (vinyl) $9,134 $7,963 87.2% $9,351 $7,593 81.2%

Window Replacement (wood) $11,040 $9,416 85.3% $11,714 $9,174 78.3%

More fun remodeling...

Minor Kitchen Remodel $17,928 $15,278 85.2% $18,454 $13,802 74.8%

Major Kitchen Remodel $54,241 $43,603 80.4% $56,277 $38,884 69.1%

Bathroom Remodel $12,918 $10,970 84.9% $13,574 $9,742 71.8%

Project Descriptions

This blog entry inspired by Brian Brady's.  Remodeling to Add Value?   He's in San Diego... I envy their % look at them all in the 80+ %s!

My buyers today have two teenagers.  Hopefully they are committed enough to remaining a family of four if they decide to buy a three bedroom home.  The return does not look that great to  me but it is good to know what you can expect in return on remodeling.

c. 2006 Columbus Best Blog