2015 Remodeling Cost vs. Value: Less Is More

I thought this was an interesting article from Texas Realtor magazine from 2015. If you are preparing your home to sell, this gives some great insight!–Katie Clark, Corner Post Real Estate, LLC

Smaller replacement projects, particularly those that enhance curb appeal, remain the most cost effective way for sellers to improve value.
JANUARY 2015 | BY STACEY MONCRIEFF

With home price gains slowing in most parts of the country, sellers will be looking for ways to get top dollar for their listing. Cleaning and staging make a big difference. But for some sellers—such as investors seeking to bring a property up to neighborhood standards before the sale—remodeling work may be the ticket.

What Is the Cost vs. Value Report?
The Remodeling Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of REALTORS® and REALTOR® Magazine, provides estimated costs for 36 midrange or upscale home-improvement projects, along with the percentage of cost that owners can expect to recoup when they sell. Projects range from a new garage door to a master suite addition.
Project costs for the 102 markets surveyed for the 2015 report were provided by RemodelMax, a publisher of estimating tools for remodelers, using Clear Estimates remodeling software. NAR members provided the expected value of the projects at resale.
To learn more and see all 36 projects broken down by region and market area, visit Remodeling at CostvsValue.com.
Remodeling magazine’s 2015 Cost vs. Value Report, ©2015 by Hanley Wood LLC. Republication or re-dissemination of the Report is expressly prohibited without written permission of Hanley Wood, LLC. “Cost vs. Value” is a registered trademark of Hanley Wood LLC.
As the 2015 Remodeling Cost vs. Value Report makes clear, large-scale jobs aren’t likely to return sellers their full cost. But there are improvements worth doing in anticipation of an upcoming sale. Some will return almost 100 percent of their cost. Others may not have as great a payback, but they can improve the market position of the property in relation to the competition. (Think about the impact of beautiful kitchen photos on online home shoppers.) In addition, several pricier projects can provide owners with a few years of enjoyment while still offering a decent payback down the road.

As a general rule:

Simpler, lower-cost projects tend to return greater value. The national average cost for a steel door replacement was $1,230, for example. That’s the least expensive project on the list, and it ranks highest on the payback scale, returning 101.8 percent nationally on average. In fact, in 43 of the 102 markets surveyed, REALTORS® said the new door would recoup more than 100 percent of its cost. Other projects expected to top 100 percent payback in multiple markets: the midrange garage door replacement, the upscale garage door replacement, the midrange wood window replacement, and the minor kitchen remodel. Notice a pattern? With the exception of the kitchen job, they’re all replacement projects. In general, replacements cost less and provide a bigger payback than remodels or additions.
First impressions are important. The replacements that offer the greatest payback are the ones that are most obvious to buyers when they first view a house in person or online, such as new door or garage door. Siding replacement also provides great value at resale—particularly this year’s one new project, manufactured stone veneer, which is expected to recoup 92.2 percent of its cost nationally on average.
Kitchens still offer the most remodeling bang for the buck. The only remodeling job breaking into the top 10 in terms of payback is the minor kitchen remodel with a national average cost of $19,226 and a national average payback of 79.3 percent.
Top 5 projects nationally in terms of cost recouped:
1. Entry door replacement (101.8%)
2. Manufactured stone veneer (92.2%)
3. Garage door replacement—mid-range (88.5%)
4. Siding replacement, fiber cement (84.3%)
5. Garage door replacement—upscale (82.5%)
Expect bigger payoffs in the West. In addition to reporting national averages, Remodeling magazine breaks down Cost vs. Value data by Census region. In the Pacific region—which includes Alaska, California, Hawaii, Oregon, and Washington—six projects are expected to top 100 percent payback. The nearest competitor is the East South Central region—Alabama, Kentucky, Mississippi, and Tennessee—where two projects are expected to top 100 percent payback.
Just how much sellers can expect to recoup from home improvements depends on the job and the region of the country they live in. There are also factors that vary from house to house and sale to sale, such as what updates are typical for the neighborhood, the quality of the work, and how important the improvement is to a particular buyer. And while you can’t apply this data directly to any specific house or neighborhood, you can use the Cost vs. Value Report as a starting point in discussions with buyers and sellers about the cost and value of remodeling.

New Seguin HEB grand opening!

The new Seguin HEB is open and ready for business. The expanded size of the store allows for a bigger and better selection of everything you could need – from locally brewed beer on tap to Texas BBQ! This is just one of the many great changes and growth opportunities our community is experiencing. If you have any questions or want to discuss the commercial or residential options in Seguin or surrounding areas give me a call! Melissa Trost (830) 556-0927

Today marks the official opening of Seguin’s new HEB store. Customers are invited to shop each new aisle as they celebrate the much anticipated completion of the nearly 100,000 square-foot store and in-house barbecue restaurant. The new store currently edges up to the west side of the old store located at 1368 E. Court St.

The store’s celebration officially began Thursday morning during a speak preview ceremony with some of Seguin’s VIP’s and elected officials.

Addressing the crowd was Seguin Mayor Don Keil. Keil says with the opening of a new store, he can officially scratch the item off the list of things that for years have been requested by the public. He says he commends HEB for hearing the needs of the city and for making a real investment in the community.

“It’s a benchmark for our city. It shows that one of the premier grocery suppliers in the country has enough faith in our community to make this kind of an investment. HEB does not make an investment like this just out of the blue. They have to look at a community and make sure that that community is going to prosper and be able to support the investment that they put here. Obviously, HEB thinks Seguin is a great place that is prospering and growing and has the ability to support a facility like this. It’s a great thing for the community and like I said ‘it’s one of those benchmarks that puts us right up there and it shows that we’re growing and prospering,'” said Keil.

HEB General Manager Danny Crowson says he is thrilled about the new store which offers customers thousands of unique product selections in a variety of new and expanded departments.

“We got an in-house pharmacy with expanded pick up and drop off counters, immunization and a patient education room. We will have in phase three of construction a drive thru pharmacy. So hang with us, be patient. We hope to have that by May; an expanded seafood department with a wider variety of meal ready solutions, fresh, wild and natural sea food, including live wild caught lobster and made-to-order sushi; a new Healthy Living Department offering the bulk food items, sports nutrition products, energy bar; a beer and wine section — we’re more than doubling the size of its predecessor with a variety of local, national and international labels to choose from; a produce section with expanded organic products, fresh in house juices and a greater assortment of fresh cut, ready to serve fruits and vegetables (and) more meal made simple options to provide dinner for the whole family in less than 30 minutes,” said Crowson.

Crowson says the availability of even more new items will no doubt be noticed in its deli, meat, floral and bakery departments.

“An expanded deli featuring more than 100 new items, including fresh cut artisan cheeses; an expanded line of curry items and in house roasted meats; an expanded bakery department with six new artisan breads and self served pastries as well; an updated floral department now offering online ordering and delivery service in addition to the same great service customer you’ve come to expect from our Floral by Design; a general merchandise department with expanded offerings, specifically in the categories of baby, house ware in the kitchen, health care and Texas Backyard, just to name a few,” said Crowson.

Perhaps the most exciting feature is the store’s new restaurant, “True Texas Barbeque.” Crowson says alongside the tasty barbecue, will be craft beer on tap.

“And last but not least, the all new True Texas Barbecue — a feature we are thrilled to bring to Seguin. Open from 11 a.m. to 9 p.m., True Texas Barbecue offers customers barbecue by the plate or by the pound. Whether you’re shopping for lunch or catering for your Super Bowl Party, we have what you’re looking for. Stop by or order to go – savory Texas favorites, like our 14 hour smoked brisket over Texas post oak wood or our smoked ribs ( my favorite), turkey, chicken and sausage. Customers can enjoy barbecue trimming classics, like cream corn, brisket beans, spicy Texas coleslaw or potato salad or dine on bistro sandwiches and salads or Texas sized baked potatoes. Finally, for all you brew heads out there. That’s a new word. I just learned that last week. We will be offering 12 Texas craft beers on tap. I envision a lot of guys coming to the grocery store with their wives and checking out right here to go in here and sit down until she’s ready to go,” said Crowson.

Until crews can begin demolition of the old store, the entrance to the building will be fenced off, providing public access from both a south and north side parking lot. Store hours will continue daily from 6 a.m. to midnight.

City Codes …. Code SMTX

San Marcos has been labeled the fastest growing community more than once and they are stepping up to the plate in a progressive way.
Yesterday I attended an informational meeting put on by Four Rivers Association of Realtors and the City of San Marcos regarding their city codes and how to address the growth they are embracing in their area. San Marcos has always been a forward thinking community with it’s ever changing, world-renowned university in place since 1899 now called Texas State. The city realized numerous months ago that they must deal with their current “one size fits all” codes and knew that they didn’t fit all and were not going to continue to fit all as they grow. If you would like to discuss codes, real estate, real estate investing and the growing market in San Marcos give us a call! 830-305-0699