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Houston homeowners often turn to local remodelers to add value to their property before putting it on the market. However, home remodeling projects in the Bayou City aren’t as profitable as they used to be, according to a new report from the Texas Association of Realtors. The statewide professional Real Estate organization released its 2015 Texas Remodel Valuation Report on April 1st, which analyzed the recoup costs for more than 20 different types of remodeling projects performed in Houston last year.
In Houston, homeowners saw year-over-year declines in recoup costs for all remodeling projects, according to the Realtors’ report. Recoup costs are what homeowners recover from their investment in a home remodeling project upon selling their home. Houston home remodelers should take heed of the Realtors’ report so they can advise their clients about the best and worst home remodeling investments.
Home remodeling projects differ in how profitable they were for Houston homeowners, according to the report. Homeowners saw the biggest profit in adding stone veneer accents to their home, recouping nearly 87% – or $6,106 – of the average project cost. Homeowners saw the least profit in adding a bathroom to their home, recouping about 47% – or $17,147 – of the average project cost.
Some Houston home remodeling projects held their value from last year while other dropped by as much as a third in recoup cost, according to the report. Home remodeling projects that held their value include adding a sunroom or deck, replacing the garage door and adding a family room. Home remodeling projects that lost their value include replacing a fiberglass entry door, adding a back-up power generator and updating a grand entrance.
Best value home remodeling projects based on highest recoup cost:
- Stone veneer accent 87%
- Garage door replacement 79%
- Steel entry door replacement 79%
- Upscale siding replacement 75%
- Basement remodeling 74%
Worst value home remodeling projects based on lowest recoup cost:
- Bathroom addition 47%
- Upscale bathroom remodel 48%
- Upscale master suite addition 49%
- Sunroom addition 52%
- Upscale deck addition 52%
Article courtesy of Paul Takahashi and Houston Business Journal