Making a calculated improvement The 2005 "Cost vs. Value" report analyzing various home improvement projects has just been published by Remodeling magazine and the National Association of Realtors, and San Francisco is one of the markets featured. Because of the skyrocketing cost of homes in the Bay Area, all 18 of the projects more than paid for themselves on resale -- and that was true for no other city analyzed, including New York.
Below, San Francisco averages for some common projects:
-- Add a "midrange master suite" (24 by16 feet over a crawl space, with walk-in closet, whirlpool tub in ceramic tile platform, separate 3-by-4 ceramic tile shower): $91,241 cost, $103,959 resale value (114 percent).
-- Add a deck (16 by 20 feet with pressure-treated southern yellow pine, concrete footings, built-in bench and planter): $13,385 cost, $21,355 value (160 percent).
-- Do a "midrange bath remodel" (5 by 7 feet, replacing all fixtures, ceramic tile floor, vinyl wallpaper): $13,695 cost, $23,107 resale value. At 169 percent, this was the top-paying project in San Francisco; an "upscale bathroom remodel" (expanded space with window added and top-of-the-line fixtures and design elements) recouped 142 percent of cost.
-- Remodel the kitchen, minor (reface existing cabinets, replace oven, cooktop, laminate countertops, floor): $17,399 cost, $26,564 value (153 percent).
-- Remodel the kitchen, midrange (cabinets, island, all appliances, floors, lighting): $51,699 cost, $76,079 value (147 percent).
-- Remodel the kitchen, upscale (top-of-the-line cabinets, countertops, appliances and lighting, with cork flooring): $92,909 cost, $109,488 value (118 percent).
The projects with the least return in San Francisco market, according to the report: an upscale master suite addition (106 percent) and a family-room addition (107 percent).
It pays to remodel your home!Labels: barriers to entry