Let’s face it. The decision to remodel a home can be daunting. You aren’t deciding whether to get a $1 candy bar at a convenience store. Instead, you’re considering whether you’re going to spend thousands of dollars to make major changes to your living space — which is likely one of your most treasured possessions.
Inevitably, value is an important factor in the final decision whether or not to remodel a home. No one likes to throw away money, particularly in substantial amounts. Luckily, there is plenty of data out there to determine if your investment is paying off. Let’s take a closer look at some of these numbers and factors.
The Importance of the Resale Value
The best way to determine the value of home remodeling improvements is the see what percentage of the money that you’ve spent on improvements is likely to be returned to you when the home is sold. This can seem a bit confusing at first, so let’s break down the numbers.
If you spend $10,000 on a remodeling project, and the work adds $9,900 to your home’s resale value, then you’ll likely recoup 99% of the cost when you sell your home. So only $100 won’t be returned to you when all is said and done.
Of course, even if you put up money on home improvements that increase your home’s resale value by a nearly proportional amount, you won’t reap those benefits until you sell the home. It’s a lot like a rebate program, where you pay a lot upfront and get some of the money back later.
In the meanwhile, many home remodeling projects will save you money on your energy bills (particularly if you get replacement windows). Your home will look revitalized with those improvements too!
Houston: More Bang For Your Buck
Remodeling a Houston area home is a very cost-efficient project, especially if you look at the effect these improvements make on resale values. We compared data from Houston and Dallas in Remodeling Magazine’s 2013 Cost-Value Report (using their online city comparison tool), and the numbers are definitely in the Bayou City’s favor. Here’s a few snippets from the report:
- Home renovation projects in the Houston area cost more than they do in the Dallas-Fort Worth Metroplex. Most projects cost anywhere from $100 to $500 more in Houston than they do in North Texas, although the difference is as big as $2,000 on a few projects.
- Roofing replacement and garage door replacement projects are slightly cheaper in Houston than Dallas.
- Resale values were higher in Houston for nearly every home remodeling project.
- Homeowners in Houston generally recouped a larger percentage of their investment through resale value than homeowners further up Interstate 45 did. This was the case for nearly every project.
- Some projects recouped a greater percentage of money through resale value than others did. For example, a sunroom addition in Houston brought only a 47.7% Return on Investment in resale value, while a fiber-cement siding replacement in the Bayou City yielded a 93.9% ROI.
Why Are Home Repairs More Cost-Efficient In Houston
The Houston area is seeing unprecedented growth in its housing market. Home sales have been in positive territory for the past 25 months, and average home prices are higher than they’ve ever been in the Bayou City. Although supply is starting to catch up with demand, homes are still valued over certain market price estimates.
Since homes are valued so highly, any renovations you make to your Houston-area home will have a bigger impact on resale value than they would in the Dallas-Fort Worth Metroplex.
The robust housing market is also responsible for the higher costs of renovations in Houston, since contractors are busy keeping up with the demand for new and improved homes. Still, the numbers show that the investment in home renovations is well worth it for Houston area homeowners.
If you’re looking to remodel your home, look no further than Best Investments Siding and Windows. We work on siding, replacement windows, doors, stone work, patio covers, pergolas, sunrooms, carports and more. Click here or call (281) 852-1866 to get a free quote.