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

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.

Key 2016 Remodeling Trends for the Los Angeles/Orange Counties Area--What is Cost vs. Value?

  The annual report is out on home remodel cost vs. value, conducted by Remodeling Magazine.  This is a valuable survey every year because the statistics vary according to the market and according to the region.  Return on projects were somewhat higher in the boom years, over 60%, and then fell under the 60% mark when the market declined.

Projects also vary in perceived value-- topping the list for 2016 was entry door replacement, especially into fiberglass doors.  Second story additions, master suites and kitchen remodels all increased this year in value, according to the real estate professionals in this survey.

Fiberglass insulation projects have been added for the first time to this report, a project not measured on an annual basis, but on a return extending over many years.  This project is estimated to give more than 100% return.

"In contrast, the five projects with the worst returns all scored cost-value ratios between 56.2% and 57.7%. From the bottom up, they are: midrange bathroom addition, upscale bathroom addition, upscale master suite, upscale bathroom remodel, and composite deck addition,"  according to the Remodeling 2016 Cost vs. Value Report (www.costvsvalue.com)  So not all upscale projects give the best return, and for some reason, neither do composite deck additions in this report.  Having seen enough termite damaged wood decks, composite decks would seen to be a great improvement in Southern California, but in this report, wood decks fare more favorably.

Replacements projects netted a few percentage points higher in return, 61%, compared to remodel projects which came out around 57%.

See the complete report online at Remodeling.
A free downloadable pdf report is also available online.

Are Flipped Properties Always a Good Deal?

While many buyers these days have gained more knowledge about obtaining disclosures when buying a property, they don't always know what to ask for.

Walking in to a clean, newly painted home with brand new flooring and granite counters in the kitchen and bathrooms is often a time of easy decision-making, largely because of the assumptions made by buyers and oftentimes their agents. 

The buyer is urged however, to look more closely, because many flipped properties were bought out o foreclosure by an investor.  Investors are just that--they are looking for ways to maximize profit by buying homes they can realize a profit on, so if they buy a "fixer", they are usually experienced in knowing how much money to spend in that local market in order to come away with cash after the sale.

In some cases, property enhancements are reasonably good quality, after all, no one can expect an investor to fix up a property with the most expensive custom  features available.  However, buyers need to still take a careful look, and ask for as much information as possible from the seller.  Just because it's an investor doesn't mean he/she is exempt from disclosure.  One of the fastest ways to find the prior condition of the property is to look for the previous listing's photographs (but many times there is only one exterior photograph, the required minimum for the MLS) and property remarks, which may be revealing.

There is not necessarily a horror story behind every foreclosed property, but more commonly there may be prior deferred maintenance because the prior owner could not keep up a property due to long-term financial problems which led to the foreclosure.  And, the prior owner may have blown his/her budget and spent a lot of money upgrading the house, and then ran out of money.  Either way, the current buyer should go to some effort to find out as much history as possible on a flipped property.

Barbara Nichols, owner of a general contracting firm in Beverly Hills and an expert witness for real estate lawsuits, advises buyers to ask such questions as:

• What was the property's condition when it was taken back in foreclosure?
• Are there receipts from licensed contractors for work performed by seller?
• Is there written documentation on what was done to correct defective conditions?
• Were there unrepaired defects?
• What work was done by a handyman? 
• What work was done with permits, and what work was done without permits?

Finding out if work was done by a licensed contractor is significant, because if the seller is claiming that thousands of dollars of improvements were made, it should be done with permits and not by a handyman.

Will all flippers be able to answer these questions to the buyer's satisfaction? The buyer will have the chance to find out, and then decide if he/she wishes to go forward with the sale by the time their contract contingencies are acted upon.



See the story here.

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!

Making Improvements to Your Property: Where Should You Stop?

There are two types of property owners: homeowners who will move in and live in the property, and investors who never plan on living in the property.


The following points are mostly for investors who are "rehabbers", but owner occupants might find some helpful points here as well in order to gain perspective on a project.


Don't overimprove a property. It's a common mistake to think that all the money put into a property will be added to the original buying price so that the owner will obtain a 100% return on the brand new kitchen, brand new bathroom, or brand new hardwood flooring. Watch out for the following problems if you bought a property to fix and sell:

• Falling in love with your property.
• Remodeling it as if it's the home you've always dreamed about.
• Trying to make it a model home.
• Making upgrades or improvements to show how well you do them.
• Justifying an improvement because it adds to curb appeal (non-monetary return).
• Applying the same formula to every property.

Keep in mind that a buyer doesn't care how much you spent. There is a difference between doing a good rehabilitation and fixing up the house vs. injecting your personal living standards into your choices. Buyers often understand the difference, and even though they may like all the expensive hardware that came from the historic replica source, they may not see it as adding to the value of the property. You must know the needs of the your target buyer. Avoid making your project what you would buy for yourself--you must make it serve the needs of your target buyers.

You must get to know your local (very local) market. Learn to look at your project the way an appraiser does: no more than one mile out from your property, and less than that if it's a different type of neighborhood. Learn what people in the area of your property are really looking for: what do they identify with. They buy in a certain area for a reason, so find out what they admire about their location, the style of homes in the area and why they want a 1970's house, a 1950's house or a 1920's house--there are huge differences in those groups. There were major sociological changes in the generations that served those houses, so taking a 1920's house, ripping out a formal dining room wall and adding a breakfast bar is often viewed as a major flaw by buyers who prize that era of housing. Putting in the same formula kitchen and bathroom re-do in an older area built up over time which contains diverse historic architectural styles could be the wrong decision. Buyers who like older homes want precisely that--a rehabber is probably going to serve the local market far better with modern improvements that blend with the era of the particular custom home, not the one-size-fits-all contractor approach. If you're a contractor, you will need to expand your perception of what it takes to market and sell a home.

For homeowners, take time to think out your ideas, consult with an architect if necessary. Do they work well with the original design and purpose of your particular home?. Mistakes I've seen lately include:

• Enlarging a bathroom in an original 1940's house to include the latest jacuzzi bath, window styles, 1920's(?) floor tile, and hardwood cabinetry which does not match the rest of the house, all by taking a closet of the neighboring bedroom. This now changes the number of bedrooms the house has, potentially lowering its value for many buyers.
• Converting a kitchen pantry into a second bathroom which opens directly into the kitchen. Bad floor plan.
• Removing original doorways in order to obtain more kitchen space so that the original circular traffic flow of the home is now obstructed.
• The aforementioned breakfast bars added by losing a dining room or kitchen wall.

Consult with sources about calculating the return on improvements, including cost vs value reports in Remodel Magazine. In the end, it's important to find out what original features of a property are desired by the local market, whether you're a homeowner or a rehabber, because those may be what brings the buyer when the property is on the market next time.