If you’re considering remodeling your home in preparation for putting it on the market, a new report from the Texas Association of Realtors suggests that your money may be best spent on smaller upgrades.
The 2014 Texas Remodel Valuation Report, which was released today, analyzed the project recoup costs and recoup cost growth in 2013 for over 20 different remodeling projects nationwide, in the South Central U.S., and in Austin, Dallas, El Paso, Houston and San Antonio.
Four of the five Texas markets in the report showed significant gains in project recoup costs in 2013. San Antonio showed small declines in recoup cost growth. In addition, remodeling trends were consistent across the state with all five Texas markets demonstrating that smaller, functional remodeling projects showed greater increases in recoup costs than upscale, luxury projects.
Smaller projects that boost a home’s curb appeal continued to be popular in most markets. Steel entry door replacements, for example, ranked first for total recoup cost nationwide, in the west south central U.S., and in Houston, recouping up to 105.5 percent of the total project cost.
In addition, projects that increased a home’s livable square footage using existing spaces showed significantly higher recoup cost values and growth in 2013. Basement remodels ranked in the top five for recoup cost in four of the five major cities in Texas, recouping up to 99.6 percent of the total project cost.
Conversely, costly room additions and upscale remodeling projects were among the least profitable projects. Sunroom additions, for example, ranked in the bottom five for recoup cost in five Texas metro areas, recouping a maximum of 61.3 percent and as little as 38 percent of the total project cost.
Major renovations were popular in more functional rooms such as kitchens and bathrooms. Kitchen remodeling projects ranked in the top five for recoup cost growth in all five Texas metro areas, recouping up to 143.9 percent of the total project cost.
Finally, projects that increased a home’s sustainability showed significantly higher recoup cost values and growth in 2013. Backup power generators ranked first for recoup cost growth in Austin, El Paso and Houston, including a 105.1 percent gain in recoup cost in El Paso in 2013. In addition, natural materials, such as wood, cement and steel, led to a significantly higher recoup cost than synthetic, plastics-based materials, such as composites and vinyl.
Source: Texas Association of Realtors