2007 Cost vs Value - Contractor Talk - Professional Construction and Remodeling Forum

**Cole** · 11-13-2007, 02:51 PM

I thought some of you guys might find this information valuable.

So I will share:
Cost vs Value

dougchips · 11-13-2007, 04:04 PM

Sort of odd that they are giving the data away for free this year. Last year I bought 4 of their books for $20 each (sticker price $60 each). Last years numbers were much better than this years.

silvertree · 11-13-2007, 05:05 PM

Last years numbers were optimistic! This years numbers are optimistic also I believe. I think they get these figures by interviewing real estate agents.
I have been getting this magazine for years, and when we were told to refer to a remodel sale as an investment the cost vs value reports started getting quoted. Could you buy a house for $300,000 and put in new windows, a kitchen and a bath for lets say a HO's cost of $80,000 and sell it in a year for $350,000? Maybe? Maybe not?

dougchips · 11-13-2007, 05:30 PM

Quote:

Originally Posted by silvertree

Last years numbers were optimistic! This years numbers are optimistic also I believe. I think they get these figures by interviewing real estate agents.
I have been getting this magazine for years, and when we were told to refer to a remodel sale as an investment the cost vs value reports started getting quoted. Could you buy a house for $300,000 and put in new windows, a kitchen and a bath for lets say a HO's cost of $80,000 and sell it in a year for $350,000? Maybe? Maybe not?

They try to explain the numbers in one of this months Hanley publications, I forget which one.........I get 4 of them. For some of the cities they base the results on a very small sampling.

silvertree · 11-13-2007, 07:57 PM

They try to explain the numbers in one of this months Hanley publications, I forget which one.........I get 4 of them. For some of the cities they base the results on a very small sampling.

Yeah, I get all those magazines too. Makes a big pile of paper after a while.Your right, its not a very complete sampling. I'm not knocking the issue completely and homeowners should realize the values they get with professional remodeling. This is probably the best way to advertise to people that they will get money back on quality work. Sure beats the return you get from buying a new car.

KillerToiletSpider · 11-13-2007, 08:07 PM

Quote:

Originally Posted by silvertree

Sure beats the return you get from buying a new car.

Not always, my dad bought a 63 vette hardtop brand new and put it up on blocks with the wheels and the battery in a freezer, my brother inherited it when my dad died and sold it for $135,000, not a bad return on a $3,000 investment.

Flacan · 11-14-2007, 09:12 PM

I think that, if planned correctly, any (if warranted) work performed can add more value than the actual cost.

Just have to make sure that one is not over or under improving.

Some tasks should not be undertaken at all.

**Ed the Roofer** · 11-15-2007, 12:33 AM

I don't know if a new roof actually returns 57 % of its initial cost, but I do know that it makes the home easier to sell, based on inital curb appeal and the lack of a sense of dread going through a new home purchasers mind about how much it will cost if it is in poor shape.

For some reason, everytime I hear a realtor describe the roof, it is new condition. Thats right, it is only about 10 years old. Thats new...Isn't it?

Ed

**Cole** · 11-15-2007, 10:26 AM

To me that is a mid span age. I think a 30 year shingle roof here in Texas, will last maybe 20 years.

**Ed the Roofer** · 11-15-2007, 10:55 AM

Cole,

I see realtors proclaim in their marketing for a house for sale that the roof is new, yet it may have been on for up to 10 years already. Sure, it may be in good condition for a 10 year old roof, but it is not new.

Can a car dealer sell a 10 year old car and adverise it as new?

Were you the guy who used to work in auto sales?

Ed

P.S. The ROI prices on the items I look up have gone down substantially since the last several years figures.