Remodeling’s “Cost vs. Value Report” is out and I’m surprised at how well “attic bedroom” projects ranked. I’m not surprised at how well the “entry door replacement” did — adding absolute value in some regions.
Although the survey’s methodology isn’t as “real” as one would hope, it nevertheless is a good indicator of what’s happening in the marketplace. The 2006 report, called the housing downturn…
Over the years, the Remodeling Cost vs. Value Report has been a reliable gauge of the general temperature of the residential remodeling and real estate markets. Typically, it is retrospective, but at times it has served to forecast a trend, as it did in 2006. That year the cost-to-value ratio dropped more than 10 points, a downturn that most remodeling professionals didn’t begin to feel until a year or more later. That 2006 Report was even out ahead of existing home prices, which in most markets didn’t start to drop until 2007.
Last year, the deepening housing crisis and fourth-quarter financial market meltdown made it difficult to interpret the Cost vs. Value data, which was collected over the spring and midsummer. The results seemed to indicate that remodeling activity was about to reach bottom and start turning up, but after the declaration of a U.S. recession, all bets were off. For many remodelers during that time, it was as if a switch had been flipped; existing business was cancelled or indefinitely postponed, and the prospect of new business simply vanished.
Fortunately for us, we’ve kept ourselves very busy throughout the last year or so, with both simple and complex projects. Well, then again, there’s so such thing as a simple project — we just make it look that way for our customers.
Here are the Top 5 in terms of cost recouped for the Mid-Atlantic region (NY, NJ, PA):
97.50% Entry Door Replacement (steel)
81.20% Siding Replacement (vinyl)
76.80% Window Replacement (vinyl)
74.50% Window Replacement (wood)
73.10% Attic Bedroom
79.40% Siding Replacement (fiber-cement)
78.50% Siding Replacement (foam-backed vinyl)
73.40% Window Replacement (vinyl)
67.20% Window Replacement (wood)
63.80% Grand Entrance (fiberglass)
Thinking about getting one started? I can help; call me.