Posted by Jeff on 10 August 2008 | 0 Comments

Tags: remodel

In today’s market, remodeling may not pay off as desired by sellers. Due to the rising costs associated with remodeling and slowing home appreciations brought on by this sluggish foreclosure crazed market, sellers need to choose projects wisely.

Projects with the highest national percentage of cost recouped include: Siding replacement (88%), deck addition (85%), window replacement (81%) and kitchen remodel (83%). With current market conditions, sellers do not need to spend a lot of money trying to sell their homes. Appearance IS important but clean and clutter free are important first impressions when viewing. Two areas a seller may want to focus on are the kitchen and the bathrooms. These areas are more likely to produce close to the desired return on investment. Here in the Kansas City area: siding replacement recoups about 70.7% of cost, a deck addition recoups about 69.5% of cost, window replacement (wood) recoups about 67.3% of cost and a minor kitchen remodel recoups about 68.8% of cost.

Many times, a seller will believe that their remodel justifies the sales price. The reality IS the market justifies their price. Unfortunately, a remodel is not anything extra, it can be considered normal maintenance on a property; basically keeping the property up to par with the current times.