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

The Change to "Green" -- Why Does This Matter?

 

In geographic areas where the homes are commonly 50-plus years old, and the most recent tracts were built up in the 1970s, the push for retooling may just feel like an uphill push only.  But in these times of need to financially conserve, there are ways to get your foot in the door towards more sustainable housing and lower expenses. To completely retrofit an older home may not bring a good cost-benefit return financially, but may other steps can be taken to improve a home's efficiency.

California has already passed laws concerning implementation of low-flow appliances, so if your living quarters haven't been changed out yet, they should be. And if you're not using light bulbs that save electricity, you're spending unnecessary money.

If a property owner is doing a major remodel on an older home or rental property, then he or she may be looking at retrofitting costs.  Part of that cost is estimating the time period to recoup the original investment.  According to some sources, adding low flow showerheads, installing LED lights and adding home insulation bring the fastest payback period for the lowest costs, most within a one year period or less

Ways to Save:

There are advanced green certifications as LEED or ENERGY STAR, which require following many steps towards certification.  But the average homeowner wishing to enhance features can do certain things that will build towards energy efficiency and more comfort without costing a lot:  

• window retrofits (more expensive but will save over time) which will also enhance the value of a home to a prospective buyer;  
• Replacing all the interior and exterior light bulbs with LEDs which use 25% of the energy of an incandescent bulb and may last up to 25 times longer, and save $75 or more each year.
• Efficient refrigerators may be 20% more energy efficient, and EE ceiling fans may be 50% more efficient. 
• Using weather sealant for doors and decks, and check insulation for proper "R" values, and wrap your old water heater to save up to 10%.
  
• Waterproofing paint generally leads to a longer lasting, more sustainable building. 
• Using renewably sourced construction material such as engineered woods, recycled woods, bamboo construction.
• Caulking, weatherstripping, sealing air ducts, installing a fireplace flue plug are additional ways to prevent air from escaping.  Thirty percent of energy in a California home is for heating and cooling, and these measures will help to reduce escaping air.
  
• A Smart Thermostat allows for programmable hours for work and vacations, another way to control home expenses up to 10% annually.  Find more energy management tools (EMTs) to save money.
  
• Xeriscaping, which calls for water conservation through low maintenance landscaping, can save over 50% of residential water use.  It's not necessary that your home look like a desert in order to achieve this, but planning with the right plants will reduce the amount of water on your grass lawn.
• Greywater is repurposed water for outdoor irrigation, and may involve a small filtration unit to direct water from the house to the outside.   
• Unplugging home printers and computers when not in use may save up to $200 annually in electricity costs!  
  

Buildings in the U.S. produce about 40% of the overall CO2 emissions, and scientists are expecting the world to need 40%-70% less CO2 emissions by 2050 to counteract the worst of climate change.  So energy efficiency is not just fashionable, it's important.  An energy efficient home is estimated to produce 2.5 fewer tons of CO2 each year! And an energy efficient home is less costly and more comfortable to live in.

For more information, check with your local city for incentive programs in place.

Further resources:

https://www.huduser.gov/portal/consumer/financial_incentives.html

https://www.benefits.gov/

http://www.dsireusa.org/

https://www.energystar.gov/rebate-finder

https://www.energyupgradeca.org/home-energy-efficiency/upgrading-your-home/ 

https://www.energy.ca.gov/programs-and-topics/programs/home-energy-rating-system-hers-program 

https://moneywise.com/a/easy-tips-for-saving-money-by-going-green     

https://greenhomeguide.com/     

https://greenlivingideas.com/              

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

Luxury Market is Active, Long Beach Quarter Ending September 2020

The luxury market in many areas has taken a surprising jump up, Long Beach included.  In fact, Los Angeles County for the quarter ending September, 2020, has had the most sales over $1,000,000 compared to the rest of the state, including the Bay Area. 

In Long Beach 90803 zip code alone, there were 52 residential sales over the $1 million mark ending in the 3rd quarter, and the average of the median price was over $1.382 million.  That was up 4% from the prior quarter.  Bixby Knolls was up 325% from the prior quarter, with 17 sales with median average price at $1.370 million.  Zip code 90808 (east Long Beach) had 11 sales averaging over $1 million, and 83% increase over the prior quarter.   The most expensive home sold in the last quarter was over $4 million.

The graphic shows more detail about Long Beach luxury sales.

 

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