What Kind of Return Can I Expect From a Remodel?

When considering a remodeling project, cost is definitely an important factor. However, you must also consider whether a remodeling project will retain its value if you decide to sell your home.

Recently, Remodeling Magazine and REALTOR® Magazine published their annual Remodeling Cost vs. Value Report for 2010, which takes 35 common remodeling projects and estimates the average recouped cost for each project in 80 cities across the United States. Although these itemized estimates are based on hypothetical projects for an average American home, they are helpful in providing an overview of remodeling costs.

On a national level, the report indicates that the largest percentage of recouped costs derived from such projects as steel entry door replacement (102.1 percent of costs returned), garage door replacement (83.9 percent of costs returned) and wooden deck additions (72.8 percent of costs returned). Many of the highest financial returns were seen from projects where building costs were less than $15,000.

On a local level, estimated recouped costs were much greater than most cities in the nation, according to the report. Below are the top ten remodeling projects that yielded the highest returns for homeowners in Austin, Texas in 2010:

•Steel entry door replacement (116.6 percent)
•Garage door replacement (98.7 percent)
•Basement remodel (84.3 percent)
•Attic bedroom (78.3 percent)
•Wooden window Replacement (76.9 percent)
•Vinyl siding replacement (75.5 percent)
•Minor kitchen remodel (74.2 percent)
•Major kitchen remodel (73.8 percent)
•Wooden deck addition (72.8 percent)
•Vinyl window replacement (71.5 percent)
Keep in mind that these numbers are just estimates and that every home is different; the cost of a new kitchen in one home could cost significantly less than the same project in another home, for example. We encourage you to talk to your Central Texas REALTOR®, as he or she can help you determine how to get the most bang for your buck when it comes to remodeling your home.

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TDHCA offering $45M to homebuyer assistance program

The Texas Department of Housing and Community Affairs has announced the release of $45 million in mortgage credit certificate authority through the Texas Mortgage Credit Program. "Despite all the negatives we hear from other states, the fact is that the Texas economy – and the demand for homeownership – both remain quite healthy," says Michael Gerber, TDHCA executive director. "Many families want and are ready to take that exciting step toward homeownership, and TDHCA wants to help them achieve their dreams through safe, reliable homebuyer lending products offered through the state, coupled with responsible homebuyer education." The program provides a dollar-for-dollar reduction of a borrower's tax liability, not to exceed $2,000 annually, and is expected to help approximately 1,000 low- to moderate-income households in Texas purchase their first home.
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