Cost vs Value What does remodeling cost in 2023 in your area

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[00:00:39] Eric Goranson: So your cost recouped is 25.6%. I tell you what that is a return on investment that is poor when it comes to remodeling and renovating your home. There is a lot to know, but we've got you covered. This is around the house. Welcome to the Round the House Show. This is where we hope you get the most outta your home through Infor.[00:01:00]

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[00:01:25] Eric Goranson: I wanted to say, hey, thanks for, uh, joining the Around the House Insider for all of you out there in the podcast, world Radio. We really appreciate you as well. We've got, uh, our new subscription service, which gets you the, uh, back catalog. And, uh, if you're a podcast listener, you get to get the podcast early.

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[00:02:06] Eric Goranson: I believe it's now run by Zonah Media. But they really changed things up. They changed, uh, some cities. They added some more relevant topics, which I love, and let's dive in here. One of the biggest ones is a controversial one, and this is one that, um, some people are really deciding to, you know, stick their, their sword in the ground and fight the battle.

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[00:02:54] Eric Goranson: So let's talk a little bit about. What their lists are here, what they say in HVAC [00:03:00] conversion is that electrification is convert a fossil fuel burning furnace to electric heat pump for heating and cooling. For a 2000 square foot home, remove a dispose of the existing furnace, uh, you know, recycling ductwork from basement.

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[00:03:34] Eric Goranson: Uh, this is a brand new heat pump installation, so this is really cool. So this is a, uh, 48,000 B t u inverter type heat pump, five line sets. So this is really putting in getting rid of the old oil or gas furnace and putting in a minis split heat pump with all the other work in it. So this is really important information guys.

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[00:04:30] Eric Goranson: $22,907 is the job cost with the resale value at 23. So either way, you're still getting 103.4%, so that's really good. Uh, Pacific out here on the West Coast, that's 104.8% average, so a little bit more. And that's pretty good right there. Now that is just. They're saying 18 to 22, almost 23,000 here.

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[00:05:15] Eric Goranson: But the, here's the interesting part is you're getting more out of it. So it's actually a, a really good investment in your home. And one, it's gonna save you money too. It's going to, uh, help you with the cost recouped if you go sell it. So you're increasing in the value. And that's really where it gets interesting is some of these cost recouped are absolutely horrible.

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[00:05:59] Eric Goranson: I think I have [00:06:00] more bathroom issues that I get from my viewers and listeners. People like you. Of contractors that have taken 'em over bathrooms. So it's a high risk category as well of you can have the, the, a beautiful contractor or you can have someone to a house that I was at here a couple weeks ago that, uh, all three bathrooms are gonna have to get gutted back to the studs because it was done that poorly.

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[00:06:49] Eric Goranson: And this is really interesting. So if we go to Bathroom edition upscale, We're gonna add another. We're gonna add a new a hundred square foot [00:07:00] master bath to existing master bedroom over crawlspace. Include a 42 by 42 neo angle shower. Nobody's gonna do that with ceramic tile walls, accent strip recess, shower caddy, body spray features frameless glass and closer free standing soaker tub with high-end faucets.

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[00:07:38] Eric Goranson: So if we go back to the, to the national average on bathroom edition, upscale, average job cost for that a hundred square feet, $104,733. Resale value 27,830. Cost recoup [00:08:00] 26.6%. That's the national average. Now, if you wanna compare that to Seattle, which I'm just grabbing another West Coast city here, uh, which I'm gonna compare it to, the average there for that price is 132,877 with a resale value of 34,000.

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[00:08:49] Eric Goranson: And, uh, we'll dive into more bathrooms here in a little bit because I tell you what, this is where it kind of opens your mind up because there's a lot of different bathroom model things here that we can talk about today [00:09:00] in the next segment, because I tell you what, it's, it's a, a good learning experience.

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[00:09:26] Eric Goranson: Cost recoup, but your resale value on average is only $16,413. We'll talk about what goes into that 24,000 just as soon as around the house returns. Why

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[00:09:57] Eric Goranson: Many people[00:10:00]

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[00:10:24] Eric Goranson: online.com and just go over the website there. You can find the videos on the front page of that, and then when you click on it, you can actually look at the playlist and see the other 80, 81 videos that are up there today over there. We've got some great stuff. It's not all just home improvement. We are talking to, uh, different people.

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[00:11:01] Eric Goranson: When we went to break, we were talking about what the average price of a bathroom model was, kind that hall bathroom and the national average in the US is 24,606, but let's go talk about the details here that really make this a big deal. So when we come into this, if you go into the bathroom remodel here, mid-range, this is kind of where it gets interesting.

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[00:11:55] Eric Goranson: Okay, guys, what are we missing there? We're not changing the floor out. [00:12:00] You notice there's no addition. There's no mention of the floor and there's nobody changing out the cabinet either. So that tells me that you're keeping the exact same floor and, oh, sorry. No, we are doing a ceramic tile floor, but you're using the same cabinet.

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[00:12:41] Eric Goranson: Um, and that's where it gets interesting. This is that upscale versus mid-range. Their mid-range is entry level. It is builder basic. And that's one thing to remember when you're looking at these things. All right, so our bathroom model upscale, which is a little bit different of course, but you can kinda get an idea here.

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[00:13:14] Eric Goranson: Soaker tub with high-end faucet. Stone countertop two sinks. Two mirrored medicine cabinets with lighting. Uh, compartmentalized commode area with one piece. Toilet exhaust fan you're gonna use matching ceramic tile on the floor. Diagonal ceramic tile base molding, new lighting, waterproof lighting fixture in the shower.

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[00:13:52] Eric Goranson: $76,827 is our national average out there. So if you're gonna do a, uh, a, [00:14:00] a, a standard bathroom remodel with what most people would put in there, national average, 76,827. Now, if you pop over to Seattle, Theirs is 96,689,000, but here's where it gets crazy. In Seattle, the cost recoup is 31.6%, so for the 96,000, almost 97,000, you get 30,000 back.

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[00:14:53] Eric Goranson: So let's go over here. Um, we're gonna pop away from bathrooms for a minute here, and I want to go over and talk about some of the things that are gonna give you [00:15:00] a better return on your investment. Cause I tell you what, that one's horrible. One of the best ones out there is a garage door replacement. Now, national average.

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[00:15:32] Eric Goranson: New door has a lifetime warning made with highten strength steel with two coats of factory applied paint foam insulated. Um, Windows on the top panel are are half inch insulated glass hardware includes galvanized steel hinges and ball bearings, urethane rollers. So nice, decent garage door. Not the builder, basic one, but a nice one.

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[00:16:20] Eric Goranson: So you're still doing good. But see, these are the things and what are the rules that I've noticed when it comes to getting your money back on a project? One of the things that I've really noticed is if you really wanna get that money back many times. Just getting that curb appeal is where you see a lot of this money, and that's where the money shows up as far as getting that return on investment.

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[00:17:14] Eric Goranson: Now in Seattle, it's of, of course, cost about 12 83, 12 8 90, actually 12,893 bucks, $11,183 recoup. So you're getting 86.7, so you're still getting. A really good return on your investment there. And again, that's because you're going through and doing that. Now, as far as scope of what you're doing, let me uh, give you a quick description on that because that's really, you're gonna take 300 square feet of continuous band of existing vinyl siding from the bottom third of the street facing facade replaced with adhered manufactured stone vidder.

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[00:18:10] Eric Goranson: And, uh, that manufactured stone veneer on average is gonna cost you about 10,925 bucks across the us, which, you know, not too bad, especially if you get on average 102.3%, you're getting some money back outta that project. More of the cost versus value report just as soon as around the house returns.[00:19:00]

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[00:19:27] Eric Goranson: And in this segment here we're gonna talk about more about things that give you great returns out of this. And in previous segments here, if you were listening on the radio, we talked about some bathroom models. We talked about, uh, you know, garage door replacement and how good of a deal that is, as well as HVAC conversion and of course manufactured stone veneer.

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[00:20:16] Eric Goranson: Now, it really depends on where you're located. Here's what's funny. In Seattle for instance, that number is almost twice as expensive. For that seal door than it is on the national average. So in Seattle, that cost is $4,063, but you only get the 2239 return. So it only gives you a 55.1% return. And so this is some of the things where this cost of living, which has gotten outta control.

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[00:21:14] Eric Goranson: Removing those programs for 15 or 20 years or more. And so that's some of the stuff we see. Now, let's get into another one that's pretty good number here. Siding replacement, fiber cement. Now what's interesting with this is it's kind of the opposite of what we were just talking about. So let me read you the, um, The fiber cement kind of specifications here, so you know what we're talking about.

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[00:22:02] Eric Goranson: Compared to what we were talking about earlier. So fiber cement, in average, you're talking about a $19,000, 19,361 is the cost to do that. So you're gonna pay 19,000 bucks to have that installed, and you have a $17,129 return to, on the national average, 88.5%. Now, here's where it gets crazy if you live in Seattle.

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[00:23:00] Eric Goranson: That is the largest return on here. So that is good money adding value to your house. We're on the west coast, it's only an 86.9% return. So interesting how that goes. Um, I know there's a ton of siding companies and they are very fast at putting the stuff in and uh, the west coast is not a vinyl siding really market.

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[00:23:59] Eric Goranson: [00:24:00] That's $19,000. 19 7 64. So you get a n and uh, the return on the investment is 19, so not as good as fiber cement. So it's only a 99.2% return. So it's funny how that goes because of it not being a hot item in the Pacific Northwest, it costs you more so it hurts your return. And fiber cement is actually cheaper.

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[00:24:47] Eric Goranson: And so when you're looking at this cost versus value report, and you can go over to their website and take a look at, put your zip code in. Take a look at it and find your area to get your numbers. And that's the beauty of this is they cover a lot of different places [00:25:00] around to do that. And so that's really great.

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[00:25:23] Eric Goranson: Mid-range, and this is where it gets kind of interesting. In a functional be dated 200 square foot kitchen with 30 lineal feet of cabinetry and countertops. You're gonna leave the cabinet boxes in place, replace fronts with new shaker wood panels and drawer fronts, including new hardware, replace cooktop, oven range, and slide and refrigerator with a new energy efficient model.

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[00:26:12] Eric Goranson: That's all that is. There's no granite, there's no backsplash, there's no anything going on there. Okay, so when we get into this, this is where the numbers start coming in here. So if you look at minor KRI model, mid-range, your job cost as a national average is 26,790. Resale value adds 22,963. So it's an 85.7% return if you got on the West Coast here.

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[00:27:10] Eric Goranson: And actually we're gonna be running outta time here in just a second. So we'll, we'll talk about this and I'll give you the numbers afterwards. But let's talk about what goes into a luxury kit model. So if we go into a major kit model upscale, that is a updated outmoded, um, outmoded 200 square foot kitchen with 30 millennial feet.

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[00:27:52] Eric Goranson: So that is a major kitchen remodel. And so that's what that is right there. And that's a pretty good, [00:28:00] that's a pretty good place to be as a nice kitchen remodel now. This is where the numbers get crazy, and actually we'll talk about this when we come back because what they say a major hit history model is.

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[00:29:02] Eric Goranson: Welcome back to The Round the House Show. This is where we hope to get the most outta your home through information and education. We've been talking about the 2023. Cost versus value report. And kind of taking a look at, uh, I picked the city other than Portland. I picked Seattle just to give you kind of an idea of what it is out here on the West coast for all of you.

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[00:29:38] Eric Goranson: Hundred 54,000 4 83 to be exact. Your resale value is $48,913 and you get a 31.7% return. Now, if we run out to major kits remodel on Seattle, it's even more $173,836 [00:30:00] with a $44,000 return, and that's a 25.7%. Cost recoup, and that gets pretty crazy pretty quick. And so now let's, let's talk about this for a second.

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[00:30:36] Eric Goranson: Under 800,000 bucks. Pretty easy just cuz of the crazy prices up there. But let's talk about that for a second. If you have a $800,000 house that has a horrible kitchen and everybody else has a brand new kitchen in it, that price of that kitchen model is coming off the price whether you like it or not.

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[00:31:21] Eric Goranson: Otherwise, you're gonna have people bottom hitting you and trying to really. Really be able to get that where you know, you're competitive in the marketplace and especially with today's Titan market, high interest rates and everything else. So that does not come out in the numbers, but if you wanna get the house sold, sometimes you're gonna have to take some hits and, uh, maybe fixing up that kitchen is gonna be one of 'em to get people to purchase it.

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[00:32:13] Eric Goranson: These guys are at Zda, do a great job with this and there's a lot of details in here that really help people. And, uh, make sure you head over to their website to get the area, the cost for your area. But when you look at a master suite edition, this is where it gets kind of crazy in the numbers because, I mean, this is a big project, so you're adding a 32 by 20 foot master bedroom suite over a crawlspace.

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[00:32:59] Eric Goranson: [00:33:00] Bathroom has walk-in shower with dual shower systems. Stonewalls floor, custom frameless, glass free standing soaker tubs. So just a really beautiful space outside the bath. Have a five foot long hospitality center with a bar sink under counter fridge, custom cabinetry, stone countertop, microwave. So they've got all the in floor heating custom wall finishes, uh, soundproofing.

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[00:33:52] Eric Goranson: $83,000 return at 20.4%. So you think about that, that is, that [00:34:00] addition is going to be your worst return, and that's pretty darn low. I mean, if you look at that, there are some other ones that are close, you know, upscale bathroom edition. You're looking at, uh, national average at 104,733 bucks, 27,830, $30 resale value at a 26.6% return.

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[00:34:59] Eric Goranson: That is at [00:35:00] 17,051, so it's a 50% return. That's not bad. And of course out on the west coast it's much more expensive than that. So those are kind of the things there that really make a difference. But when you look at this, your worst recoup on investment, unfortunately, is your bathroom projects. Your mid-range, cheapy mid-range bathroom model gives you the best return because the cost is so low.

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[00:36:01] Eric Goranson: So you're, you're tossing away 80% of the investment on that. Whereas in a, in a, just to kind of put it in a nutshell, your best return if you're in the Seattle area is fiber cement siding, where you get 151% return and really the best on the national average, if we look across the US, go into a heat pump at 103.5%.

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[00:36:54] Eric Goranson: So that could be even more, that could be 130, 140% if you've got. [00:37:00] Thousands of dollars coming off that price to do that. And it's gonna save you some money in the long run too. So really, curb appeal is big. Your HVAC conversion to electric is big and even bigger than what they state due to that. And then, you know, roofing is decent.

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[00:37:46] Eric Goranson: And so those are kind of my tips for this consumer. You know, if you're gonna go out as a consumer and pay for somebody to do this project, This is where that cost [00:38:00] versus value is gonna come in. Now, many times that job cost, if you're gonna do it yourself as a DIY project, my recommendation is, is to cut it down by half.

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[00:38:29] Eric Goranson: So this is where really on some of these projects, if you decide and have the skills or want to learn the skills to take on the project, you can really increase your value because all of a sudden, if you take something that has, you know, a 54% return, You're now taking that into a hundred percent return.

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[00:39:04] Eric Goranson: You can head to our website at around the house online.com, and if, uh, you're listened on the radio, you can catch the podcast over there. And if you want to be part of the, uh, round the House Insider, make sure and subscribe over on any podcast player or head over to around the house online.com. All right, hour number two coming up.

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