“What will my remodeling cost?” is one of the first questions many homeowners ask APEX when considering a project. That’s fair. It’s not like they can go on Amazon and compare prices and features for a new kitchen or room addition. And how could they possibly know remodeling labor, materials and project management expenses.
Fortunately, Hanley Wood LLC, the nation’s biggest construction industry publisher, issues a report each year that estimates costs and resale payback (value) for dozens of common remodeling and replacement projects. The Remodeling 2019 Cost Vs Value Report draws on a leading construction estimating tool to price the jobs. Then it asks experienced Realtors from different regions to score how each project would impact the home’s resale value so it can calculate payback.
Kitchen and Bath Remodeling Costs
Here are a couple of examples. The report prices a mid-level quality major kitchen remodeling for our West North Central region at about $64,400 (62.1 percent payback) and an upscale kitchen at about $128,700 (59.7 percent payback). It pegs a mid-level bathroom remodel at about $19,600 (67.2 percent payback) and an upscale bath at $62,500 (60.2 percent payback).
I think this independent cost/value benchmarking provides APEX Construction Management clients with a valuable frame of reference. We share the link to the annual study because well-informed homeowners are our best clients.
Basis for Remodeling Costs
Like the study’s publishers, APEX doesn’t pull a big number out of the air based on what a similar project cost last year. Rather, we tally all of the tasks and materials that must be completed and add overhead and a reasonable profit. We build each estimate from the ground up, just like our award-winning additions.
As expected, the latest report shows that both project costs and values increased last year. Steel tariffs, skilled labor shortages and strong demand will do that. For instance, the authors noted that the cost of replacing a steel door increased 24 percent from the previous year. That’s also why our design estimates come with expiration dates.
You Come First
The value or payback part of the annual remodeling study reflects its source: Realtors. Once again, exterior facelift projects such as garage doors and stone veneer accents retain the most value because their costs are relatively low and they help to make a good first impression among prospective homebuyers. Realtors say this enhanced curb appeal raises price expectations.
Payback should be considered if you are improving your home to sell. In that case a minor kitchen remodel at $21,900 may be worthwhile. Realtors in our region say it should retain 80.5 percent of its value. But, in reality, most APEX clients tell us they plan to stay in their homes and are remodeling for themselves to improve their quality of life. As the study suggests, the composite deck will cost more than wood, but what is it worth to avoid sanding and re-staining every couple of years?
Download Complete Report
To learn more, download the complete Remodeling 2019 Cost Vs Value Report free here. Be sure to review the scope for each project so you understand how it compares to what you plan. If you have any questions, please contact me.