Los Angeles Area Cost vs Value for 2024 Remodeling Jobs

Tired of this? Consider some upgrades

The annual report for Cost vs Value for the Los Angeles area is out. This is always a good resource for checking what certain projects might be for resale value.  Bear in mind that such returns are based on area, local supply costs, and local selling market for those improvements.

• One of the highest return items is the installation of a new steel entry door cost approximately $2400 with a resale value, according to this source, of $7210, or 300%. This item has been on the list for a few years as a good investment. 
• Manufactured stone veneer costing $12,000 brings a resale value of over $26,000, or a 220% return.
• Garage door replacement, another key trend for several years, with a cost of $4300 is listed with a resale value of over $12,000, or over 293%. 
• A minor kitchen remodel costing about $28,000 is listed with a resale value of $39,000, or almost 140% increase.
• A composite deck addition costing over $24,000 brings a return of about over 86%, but a wood deck addition cost a few thousand less has an increased resale of over 120%. Maybe people just like wood, but it's susceptible to termite damage.
• Another good investment, in my opinion, are window replacements, and depending on which type you use, wood or vinyl, you may see a value increase between 83-90%.
• Primary suite additions are among the most expense on the list, and the returns are in the 44-61% range.
  

As above, keep in mind that certain improvements may not bring the resale value stated in this report, because the more properties in your area that feature certain improvements, the more they become the standard for the area--your reward may be in a faster offer and a quicker sale depending on the local demand for a particular feature.

To get detailed information on each of the 23 key trends used in this report, go to https://www.remodeling.hw.net to download the report.  

For more resources on job cost, go to my resource page at https://www.abodes.realestate/free--mostly--resources-for-you

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Annual Cost vs Value for Los Angeles Area Home Remodel - 2023 Report

 

Remodeled kitchen white counters

The annual summary on cost vs. value for home projects is out for 2023. This is an interesting guideline for what homeowners might expect for return on projects, it is not, however, equally applicable to all properties or to all cities in the Los Angeles area.  Homeowners and prospective buyers will vary according to perceived value and personal preferences, architectural style, neighborhoods, or construction era of home. Notice that some installations, i.e., vinyl windows, do not deliver the return they once did as they become more common and an expected feature in the market.  Also, availability of supplies in the market may affect some features if they are considered more "prized" to obtain.  Also interesting is that midrange cost remodels offered a better return than much more expensive upscale remodels of kitchens and baths.

The following information is provided by Zonda Media through "remodeling by JLC" magazine.

Garage Door Replacement - one of best returns on lowest cost: $4781 with 99.9% return

Steel Entry Door Replacement - $3859, 68%

Vinyl Siding Replacement - $16,321, 105%

HVAC Conversion, Electrification - $18,311, 103%

Minor Kitchen Remodel - $28,509, 88%

Midrange Major Kitchen Remodel - $82,391, 43%

Upscale Major Kitchen Remodel - $164,841, 30%

Bathroom Addition Midrange - $60,708, 30%

Bath Remodel Midrange - $26,342, 67%

Vinyl Window Replacement - $22,455, 67%

Go to remodeling by JLC for the complete report.

When a home is appraised for value by a licensed appraiser, comparisons to other nearby properties are made based on similar condition, upgrades and features.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Cost vs Value 2020 from Remodeling Magazine

This annual report from Remodeling Magazine covers 12 project areas, broken into different levels of job costs, resale value, and cost recouped.  This is usually an interesting and viable resource for homeowners who are contemplating a remodel, or for those who already have completed one this year.  Resale value, in my opinion, is always a good thing for the remodeler (homeowner) to consider, as sometimes what will boost the value of a home is sometimes overestimated.  The reader may go online and download a full report for his or her area, see link below.  This report is based on the Los Angeles area.

There are five projects covered in this post, chosen according to highest return on value, regardless of the original investment amount.  Many times homeowners can maximize their sale price without plunking down a huge investment.  

Second highest return on cost:  As in past several years, garage door replacement brings in over 100% of investment (106.6%). The replacement is a four-section steel door with foam insulation and windows in the top panel, insulated glass. The motorized door opener was not replaced.  Cost:  $3,956.

Highest return on cost:  manufactured stone veneer with a return of 120.2%, which involved removing a 300-square-foot of vinyl siding from front of property, and replacing with manufactured stone veneer.   Additional installation included two separate layers of water-resistive barrier over bare sheathing.  Total cost: $9,699.

Minor kitchen remodel: 95.1% return on value. This involved replacing cabinet fronts on original cabinetry with new wood panels and drawer fronts, including new hardware. Replace cooktop/oven range and refrigerator with new energy-efficient models. Replace laminate countertops; install sink and faucet and new flooring, new painted walls, trim, and ceiling. Cost $26,993.

Entry Steel Door Replacement: 91.2%, cost $2,119. This is a factory finished door with same color on both sides, lockset replaced, included dual-pane glass panel.

Composite Deck addition;  84.4%, 16x20-foot deck composite material in a simple linear pattern. Include built-in bench and planter, stairs, assuming three steps, railing using a matching system made of the same composite. Cost $23,911.

Surprisingly, bath remodels or additions, which vary in cost, did not recoup as much as  the kitchen mentioned above.  Roofing and siding replacements fared higher in return than bathrooms.  For more complete cost comparisons, and costs in different regions, please review a download of the Remodeling article.

All project information in this post is from: Remodeling 2020 Cost vs. Value Report (www.costvsvalue.com) ©2020 Hanley Wood Media Inc. Complete data from the Remodeling
2020 Cost vs. Value Report can be downloaded free at www.costvsvalue.com

 For a market estimate of your property, and to find out what recently remodeled properties in your area have sold for, please contact me for a professional valuation.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

5 Criteria For Pricing A Home (Plus More)

When you put your home up for sale, one of the best ways to determine the asking price is to look at comparable sales. Unless your home is in a tract where few house modifications have been made, there’s rarely a perfect apples-to-apples comparison, so a pricing decision often relies on comparisons to several recent sales in the area. Here are five criteria to look for in a sales comparison.

1. Location: Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood is a good start, but comparing it to homes on the same street or block is even better. Appraisers usually use distance, i.e., up to one mile, as one of the selection bases for comparable homes, however a very similar home on your block will be included for value consideration over a very similar home a half-mile away.
   

2. Date of sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available. Depending on other factors, home sales from the previous 6 months, and if there are many, the previous 30-90 days, will be selected for comparison.
   

3. Home build: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics. If your home is in a 1920s Spanish bungalow historic district, it's not likely that a 1962 contemporary style home will be selected even if it is not far away.  And, a condo is rarely ever considered a comparable for a single family home.
   

4. Features and upgrades: Remodeled bathrooms and kitchens can raise a home’s price, and so can less flashy upgrades like a new roof or HVAC system. Be sure to look for similar bells and whistles. However, a remodeled kitchen does not automatically raise the price of a house using the cost of the remodel.  Since remodeled kitchens and bathrooms are more common in the market, they will be a more standard basis for comparison. 
   

5. Sale types: Homes that are sold as short sales or foreclosures are often in distress or sold at a lower price than they’d receive from a more typical sale. These homes are not as useful for comparisons.  Some lenders when requesting an appraisal will not want to use a distressed property as a comparison for a standard sale, however, if a distressed sale property otherwise compares to your home, and it sold for market value, it may be accepted in the appraisal.

Other factors such as square footage:  Unless it is a very down market with very few sales and the appraiser must make adjustment calculations, a 2000 square foot house that is 4 bedrooms will not ordinarily be used as a comparison for a 900 square foot home with 2 bedrooms--it would simply fall outside the usual comparison parameters.  In that case, an appraiser is more likely to widen the search area to find a more similar property in a similar area.

An appraisal is an opinion of value by the appraiser, and sometimes one of the parties disagrees with it, in which case a buyer may request another one by a different appraiser (and probably have to pay the price for it as well).  Listing agents will usually meet the appraiser at the property and hand them comparables they believe justify the contract price.  When I've done this, most appraisers will review those properties especially when the agent is extremely familiar with the nearby sales.

Getting the right list and sell price is important for a smooth transaction, and these are the more common issues agents need to take into consideration when presenting market information so that a seller gets the proper perspective on pricing their home.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

2020 Cost vs. Value Report for Los Angeles Area--Or How Much Do You Recoup?

Kitchen remodel

This annual report by Remodeling Magazine (Remodeling 2019 Cost vs. Value Report”, www.costvsvalue.com) comes out on a regional basis. In case you could be a first time seller, it's important to remember that what a project costs is not usually how much it's valued in the market.  The local market sales prices of similar projects determines value, or what the consumer is willing to pay for all the seller's hard work.  This projection fluctuates in these annual reports--starting in 2008 up to the present, the cost recoup percentages range between 61%-72%.  The final overall figure for 2020 for the L.A. area is 63% for a project that cost about $65,000. This is explained as a result of a "shaky decline over the last six years in the cost recouped for these remodeling projects" due to consistently rising project costs.

Another variation from year to year is what type of project brings the best return.  On the national level, several years ago it was new garage doors, for 2020 manufactured stone veneer brought in the highest recoup at 96%, with garage doors still high at 94%.   The lowest is upscale rendition of a master suite addition (once a very popular project) at 52%. Kitchen remodel is more profitable at the "minor remodel" level. Vinyl window replacement is almost at the upper 25% in replacement value.

For the Southern California/L.A. area, the highest individual project returns are minor kitchen remodel at 105% return ($26,000 cost); steel entry door replacement at 106% ($2000 cost); garage door replacement at 123% ($3800 cost); manufactured stone veneer at 130%; vinyl window replacement at 102% ($19,000 cost).  Roofing replacement for asphalt shingle of $30,000 cost was recouped at 92%. But a metal roof replacement only received 79% of a $48,000 cost, which in a high fire zone might be more highly valued.  The West Coast, interestingly, received the highest return on manufactured stone veneer (new item in this year's report) out of all the regions.   Interestingly, bath projects ranked lower than the minor kitchen projects (does everyone already have a new bathroom?), in the Pacific Region.  For definition of major and minor projects, just take a look the report at the link below.

For selling in the near term, just think of how to give your home exterior and interior appeal and how these projects might help you do that.

For the entire report, go to the 2020 report.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

Which Projects Are the Right Ones for Your Home?

When selling or buying, it's always good to think about remodel or fixup projects and how they fit with the home.  The return may vary with the region in the country, but there is a trend on what used to bring higher returns which may be lower now.  For instance, garage door replacements didn't used to be at the top of the list, but as kitchen remodels have become more common, other home features are getting more attention. For instance, vinyl windows are, in my opinion, a good investment whether house or condo--they block noise, keep a home better insulated and add attractiveness.

You Need to Know About Your Appraisal

The appraisal process often baffles consumers. They may feel that their home is worth a higher dollar amount, and so the appraised value doesn't always make sense to them. It is important to know that the appraiser is completely independent from lenders, buyers, sellers, and real estate agents, and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice and Fannie Mae. In most states, the mortgage lenders must also disclose the purpose of the appraisal, as each transaction carries its own set of rules.

In essence, these important guidelines help appraisers put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value.  What does "bracket" mean?  It means that selected comparables must be, within certain percentage levels, larger and smaller in size, higher and lower in value, as well as better or worse in condition.  These may vary not only according to lender but also type of loan.

For example, there is no set dollar figure associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, but the local marketplace supports the value of a pool at $15,000, then that item will be bracketed as [$15,000] on the appraisal.
Upgrades can usually be expressed at a higher percentage of their value in newer homes because the only way to obtain those upgrades was to put more money into the cost of building the home. On the other hand, the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal. This is because typically 25%-40% of the project involves demolition and the fixing of issues that aren't uncovered until the project has already begun, such as plumbing or wiring that may need updating.

Ultimately, the value of the upgrades must be supported by comparable examples within the same marketplace. These comparisons must be drawn from current market activity within the last six months. This is a safeguard to prevent appraisers from attaching too high a value to the home in question, and opening up the appraisal for review. This guideline further states that appraisers can only base their opinion on the value of home sales that have actually closed, however, current active and pending sales will also be included in an appraiser's report.

In addition, the guidelines in the 2009 Home Valuation Code of Conduct must be applied, which among other things prohibits a lender from having any contact with or influence on how the appraiser values a home. This Code, however, does not prevent the seller or buyer REALTOR from having direct contact and asking questions concerning the appraiser's familiarity with the area.  This is very important to know about an appraiser, since it's the local marketplace that determine the adjustments in values.

Article information taken from an e-mail from South Pacific Financial Corporation

Home Projects in Los Angeles area: Cost vs. Value



10 Remodel Projects



It's that time of year when homeowners might be thinking of making some improvements.  Or, if you're buying a home this year, you'd like to know what your best improvement might be to fix up a new home.

Remodeling Magazine 2013 report breaks down project costs and returns by geographic area.

For the Los Angeles area, a steel entry door replacement offers one of the highest returns on cost--not everyone wants one for their front door, however.  Perhaps that won't fit in with the local guidelines if you live in a historic district, but you definitely would want one if you have an attached garage with a direct entry into the house for local fire code reasons.

Outdoor decks and garage door replacements are the next high value return projects. Garage doors especially when the garage is attached to the house affect the appearance of your home greatly.

Vinyl or wood window replacements are high on the list of return as well, especially when offering dual-paned inserts.

Interestingly, bathroom remodels and bathroom additions are between 50% and 65% return on value, yet when shopping for a home, updated bathrooms and kitchens are quite significant for most buyers.

All 2013 projects have increased in return on value since 2011, click here for the entire list of projects.

Home Improvement Tips--Cost vs. Value Report

There's a lot of information available about getting a new look for your home, or getting it prepared for marketing, or just getting it fixed.  But how do you know the best areas to invest your time and effort?  Every year Remodeling Magazine publishes its online report -- it's a great resource to consult with to find out what your best choices might be, both from a popularity standpoint and a financial one.  If you're thinking about or considering selling, why spend tons of money or time on a big improvement that may be your best personal choice (if you're going to live there indefinitely), but not one that the majority of buyers may deem significant, or vice-versa? Find out what the trends may be in your region. The improvement picks are not necessarily the same each year.  The annual "Cost vs Value" report for 2012 is not out yet, but should be soon, but here is the link to the Los Angeles area version from 2011.

Also, If you go to www.juliahuntsman.com and scroll down to "Houselogic", you can click and go to their main website for more home improvement tips and maintenance.  This is a really useful resource as you can save items to make your own collection.  Houselogic is another great resource from the National Association of Realtors.

Frankly, when it comes to home colors, I go to a store like Dunn-Edwards and get their paint color chips--they also have very nice brochures putting together a coordinated palette of colors for interiors and exteriors--as well as colors that could be used for various architectural styles and periods. Historical colors can be important, especially if you're located in a historic district where there may be local rules or guidance on period color selection.

If you use Facebook, "like" my page at www.facebook.com/longbeachhomesandcondos while you're there and you can follow my blog posts where I put out information for both buyers and sellers, or just look at my blog at www.longbeachrealestate.blogspot.com from time to time!

The 5 Best Home Improvements Projects in Southern California

It's should be no surprise that costs have gone up, but important to know is that the 9-year trend shows a downward cost-value ratio. But still, the Pacific Region in the 2011-2012 Cost vs. Value Report states, "In Pacific Region markets, the high cost of remodeling is more than offset by high values at resale, giving it the highest average cost-value ratio (71.3%) in the country."  And, overall, the report puts the top 10 projects nationwide as giving a value between 69-78%. 

Remodeling Magazine: Regional Comparison

Sellers, at this point, please take note that 1) because you put in a $40,000 bathroom remodel doesn't mean the value of your house went up $40,000, and 2) taking care of deferred maintenance projects, unless a large remodel/upgrade is the replacement, does not add a higher price tag to your home.

And, keep in mind that a low-cost re-do of $3000-$4000 can often be enough to prepare a property for sale, i.e., low-cost kitchen fix-up, vs. spending $19,000+.

Nationally, siding, window and door replacement projects were in the top 10, because certain costs have actually decreased, and also because they are under $19,000. Garage door replacement is now 6th in popularity (it was 13th in the past), and is 15% cheaper than a few years ago. Vinyl siding and vinyl window replacements are also in the top 10.  With remodel projects, adding an attic master bedroom/bath continues to rank in the top 10.  With single-story houses that were originally a two-bedroom/one bath, going up to add more living space has gotten high marks.

For the Pacific Region including California, the following are the top 5 value projects:

1. Minor kitchen remodel stands out at retaining 91% of its value ( replace: cabinet fronts with new raised-panel wood doors and drawers, including new hardware;  wall oven and cooktop with new energy-efficient models; laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring).
2. Garage Door replacement -88%
3. Entry Door replacement - 85%
4. Deck addition - 81%
5. Window replacement - 81%

Places to look  for contractor sources may be at local tile and kitchen shops, local area classified ads, online directories, and of course, referrals from friends.

What Are the Best and Worst in Home Remodel Values for Long Beach/Los Angeles?

The latest Cost vs Value report is out!

Buyers often want a 3 bedroom house or condo not because they need all the bedrooms for sleeping quarters, but because they need office space. Interestingly, according to this Report, the home office remodel could be the lowest in terms of recouping cost.  One of the things to consider is a future buyer's need for an actual bedroom and the closet that was previously turned into office shelf or storage space. 

The next two items with under 50% return on original cost are a sunroom addition and backup power generator--with the fourth on the list being a bathroom addition at 53.5% return.

The top best return remodels are a steel entry door replacement (100% return), garage door replacement, deck addition and minor kitchen remodel, alnd with siding replacement and vinyl window replacement--all over 70% cost recoup.
The only item in the 2011 report to increase in return on original cost was the garage door replacement, included for the first time in the report--new garage doors add curb appeal on a prospective buyer's first impression of a home, and are also one of the lowest actual cost projects to install for a homeowner. (Just think of the times you pulled up in front of a great house with a weathered garage door.)  All other items in the report have decreased.

Master suite addition and family room additions are between 60-70% return.

Overall, exterior replacement projects under $25,000, rather than more expensive remodel projects, are leading the way in return on cost, since they are less expensive.  The outdoor wood deck tied with the minor kitchen remodel.

Owners might want to consider utilizing existing space for conversions--they may be less expensive than a new addition, and they don't change the original floorplan or "footprint" of the home. 

If an addition does not have a good flow for the overall floor plan of the home, especially considering the price of a home, a buyer may go elsewhere to find a more recently built home that was designed for such amenities.

See the 2010-2011 Cost vs. Value annual report by Remodel Magazine for the Los Angeles area,

To find properties in all Long Beach (and nearby cities) areas and types, please go to this property search.