Sliding home values in metro Atlanta over the last couple of years have kept many folks from moving forward with remodeling projects. Some of this can be attributed to reduced access to capital, consumers saving to reduce debt, and fear of over improving a home in a depreciating market.
There appears to be a light at the end of the tunnel and values have begun to stabilize and even increase in certain Atlanta communities from a year ago. Remodelers are telling me that they are beginning to see more activity and are upbeat about next year. This is great news for everyone, especially for those who have been contemplating a renovation but have been on the sidelines waiting for values to stabilize.
The 22nd annual Cost vs Value Report from Hanley Wood, LLC, reports on the relationship between remodeling costs and resale value for 33 project categories, 21in the mid range price point and 12 in the upscale price point. Complete city data from the report can be downloaded free at www.costvsvalue.com.
The top five projects for Atlanta are:
- Entry door replacements
- Siding replacement (fiber cement)
- Grand entrance
- Attic bedroom
- Minor kitchen remodel
All of these projects recouped more than eighty percent of their cost at resale. With many people looking at staying in their homes longer, it is important to look at performing those projects that not only provide a good return on investment but also provide your family with the features and benefits for function, comfort and safety.
If you elect not to remodel, remember that a big part of maintaining your homes value is to stay on top of maintenance. Letting your home deteriorate in a declining market will only decrease your value more and definitely won’t attract many buyers. An ongoing maintenance regimen is also more cost effective if you are looking to save. Remember curb appeal is king when it comes time to sell.
Have a prosperous New Year and happy remodeling in 2010.
Jesse Morado is a Certified Remodeler and CEO of Renovation Coach, Inc. a construction consulting firm dedicated to enhancing contractor business practices and providing guidance and advisory services for clients engaged in remodeling. He currently serves as vice chair for NARI’s (National Association of the Remodeling Industry) education committee and is a former president of the NARI Atlanta Chapter.