Is this a good year to tackle a remodeling project? Actually any year is a good time if you're making some changes to better fit your family's lifestyle. However, if increasing your home's value is also a goal, 2013 might be the year you've been waiting for: Remodeling Magazine's Cost vs. Value Report for 2013 is out, and the numbers are looking pretty good.
Remodeling Magazine's annual Cost vs. Value report has long been recognized as one of the best resources for how much homeowners might expect to recoup from home improvement projects. The data is compiled by region and from larger metropolitan areas so that trends across the entire country can be identified. The estimated cost of construction of various remodeling projects is compared to how much they can be expected to increase a home's price when it's sold.
The percentage of return has increased across the board for the first time in six years due to dropping construction costs and home values stabilizing -- even rising in many markets. A recent article in Barron's Magazine concurs on the upward trend in housing values: several experts predict they could increase as much as 5 to 10 percent nationally over the next several years.
Construction costs might be another matter -- the current low levels could be temporary. An article on Bloomberg.com describes how a rebounding housing industry might cause a lumber shortage that could result in higher prices. Framing lumber and trim can be a big part of the material costs of many home improvement projects.
For now, however, the planets appear to be aligned, and 2013 might be a good year to finish your basement or add a bedroom in the attic. Here are a few remodeling projects that the Cost vs. Value Report estimates should provide a good return on your investment:
The percentages are based on a national average and could be higher or lower in your region. For example, if your home is located in the Pacific region, you might be able to recoup as much as 89% of the cost of adding an attic bedroom, and a basement remodel could return 87.8 percent. Regardless of where you live, 2013 might be the ideal time for a home improvement project.