Project Descriptions

Basement/Attic

Dollar for dollar and bang for buck, basements and attics are among the more cost-effective ways to increase a home's value. These projects don't pay off as handsomely as some others; on a national basis, a midrange basement remodel recovers 78.8% of its costs, and a midrange attic remodel 79.9%.

But often, basements and attics more than pay for themselves. And both can be affordable ways to "add on" without pouring concrete, framing exterior walls, or otherwise, well, adding on.

"Attics are awesome," says Minneapolis remodeler Michael Anschel. His attics typically become master suites for parents seeking their own living and relaxing space, and cost from $60,000 to $150,000. In Seattle, Jackson Remodeling often undertakes "major structural work" to expand attics into larger master suites costing from $150,000 to $200,000, Leif Jackson says. Other common attic conversions include guest bedrooms, as well as home offices. Basement remodels vary widely depending on region, age of house, and homeowner's lifestyle. Gary Potter of Potter Construction, Seattle, agrees with our cost averages, but notes that a multitude of factors can push costs higher, such as low ceilings that require the house to be raised or the floor lowered.

Fellow Seattle remodeler Denny Conner says that his basement remodels usually start at $100,000. "But if it's done well so it doesn't feel like a basement, I'd say our clients could get 100% of their money back," he says.

Legal considerations can also have an impact on basement values. Jackson Remodeling often upgrades windows and builds closets to meet egress requirements, enabling clients to legally claim basement rooms as bedrooms. In Boise, Idaho, basement remodels recoup 123.9% of cost, but that may be because unfinished basements can't be considered in the appraised value of living space, explains Bill Keilty of Keilty Construction.

For the new suburbanites of Provo, Utah, "it's not if but when they're going to remodel" their huge, unfinished basements, says Cory Hogan of Upscale Downstairs. His costs average $20 to $25 a square foot for basements that are 1,500 to 2,000 square feet. Basement remodels in nearby Salt Lake City recoup 85.4% of their cost at sale.

"The biggest thing is home theaters," he says. "I think more people just want to get the big ugly TV out of their formal spaces upstairs and into the recreation space downstairs."

Also popular in new homes -- particularly in humid regions -- is the Owens Corning Basement Finishing System, made of moisture-resistant fiberglass panels that can be installed in a week. Jim Quigley, whose Midwestern franchises expect to install $25 million worth of systems this year, says his basement remodels typically cost $20 to $40 a square foot, excluding plumbing. Customers "are getting back their money, especially if the house next door is just like theirs and the only difference is the basement," he adds.

Attic Bedroom Remodel

Convert unfinished attic space to a 15-by-15-foot bedroom and a 5-by-7-foot bath with shower. Include a 15-foot shed dormer, four new windows, and closet space under the eaves. Insulate and finish ceiling and walls. Carpet floor. Extend existing HVAC to new space; provide electrical wiring and lighting to code. Retain existing stairs, but add rail and baluster around stairwell.

Basement Remodel

Finish the lower level of a house to create a 20-by-30-foot entertaining area with wet bar and a 5-by-8-foot full bath; construct 24 LF of finished partition to enclose mechanical area. Walls and ceilings are painted drywall throughout; exterior walls are insulated; painted trim throughout. Include five six-panel factory-painted hardboard doors with passage locksets. Electrical wiring to code.

Main room: Include 15 recessed ceiling light fixtures and 3 surface-mounted light fixtures, and a snap-together laminate flooring system.

Bathroom: Include standard white toilet, vanity with cultured marble top, resilient vinyl flooring, two-piece fiberglass shower unit, a light/fan combination, vanity light fixture, recessed medicine cabinet, towel and paper-holder hardware.

Bar area: Include 10 LF of raised-panel oak cabinets with laminate countertops, stainless steel bar sink, single-lever bar faucet, under-counter refrigerator, and vinyl floor tile.

Bathrooms

Homeowners are willing to spend money on luxury products tocreate bathrooms that reflect their personal style. Nowhere is this more evident than in the cities that have the highest returns on cost for bathroom remodels. "When someone is really splurging, they are not getting something stock or off-the-shelf," says Ben Ladomirak, owner of Teevan Restoration in San Francisco.

David Rhodes of Schmid & Rhodes Construction, in Knoxville, Ky., says that although his customers renovate secondary bathrooms, they put more money into master suites -- including expanding into adjacent space or adding on. They are also upgrading the finishes. "Products that were difficult to get five years ago are readily available today in most retail stores," he says. These include tumbled marble, high-end tile, and multiple-head shower fixtures. However, he tells customers to expect a lower return during resale for this custom work because it may not be to the buyer's taste.

Though Miami remodeler Lee Parron of Kitchen Center renovates kitchens, he also sells bath cabinetry. "Our customers are spending $10,000 to $20,000 just on bathroom cabinets," he says. "Whether it is a very modern Zen-like feel or a traditional period look, both are costly."

Tom Poulin has run Poulin Design/Remodeling in Albuquerque for 25 years and added a Re-Bath franchise in 1998. His design/build customers spend $40,000 to $60,000 on master suites that include stone, whirlpool baths, frameless shower doors, and shower spas. However, the Re-Bath side is up 38% since last year. The company offers several packages that vary in scope from installing a bathtub liner to replacing all faucets, fixtures, and surfaces. The average Re-Bath client spends about $3,500 for the tub or shower-surround package.

"The bathroom is an integral part of the home that is used every day and must be maintained," Poulin says. He notes that single-family houses have an average of 1.5 bathrooms. "We have 200,000 single-family homes in our area, so 350,000 bathrooms have to be redone every 10 years. That is an unlimited market."

National return on investment
Bathroom Remodel midrange: 84.9%
Bathroom Remodel upscale: 77.4%
Bathroom Addition midrange: 74.9%
Bathroom Addition upscale: 72.8%

Bathroom Addition - Mid-Range

Bathroom Addition - Upscale

Bathroom Remodel - Mid-Range

Bathroom Remodel - Upscale

Kitchens

The 85.2% national average for the return on investment for a midrange minor kitchen remodel (national average cost $17,928), doesn't tell the story of the extremes. In San Francisco, a midrange minor kitchen remodel gives a homeowner a whopping 126.2% return. But angle across the country to economically challenged Buffalo and the story changes.

"We have the most affordable housing market in the nation," says Chris Repp, president of Repp Construction, a design/build company. "Because of that, some people don't want to invest in their homes." The average return in Buffalo on a minor kitchen remodel -- a "pull and replace" as Repp refers to it, something where he's not altering structure -- is 72.3%. For an upscale kitchen, it's 63.1%. People don't want to price themselves out of the housing market, and "when they do remodel, they're conservative in their choices," he says. "They're worried about what the next person is going to buy -- even if they're not moving."

But in San Francisco, the real estate market offers the most expensive homes in the nation. Although home sales have slowed, prices have remained high. In that market everything is more expensive, including the cost of labor for remodelers.

A minor kitchen remodel "gives you more bang for your buck" says Everett Collier of design/build company Collier/ Ostrom Enterprises, who has done those jobs for resale and even for rentals. His upscale kitchen jobs require much more work -- with their custom cabinetry, custom panels for electrical and plumbing, concrete countertops, and range hoods. "We've seen undercounter fixtures that take half a day or a day to install. There's a lot more futzing around," he says. Yet those jobs, according to the survey, are still returning 110.9%.

"It's not about keeping up with the Joneses," Collier says. "The Joneses are not just the people next door. The Joneses are the people who you see on HGTV ... or in Dwell or Architectural Digest. A lot of those magazines are driving this trend."

Minor Kitchen Remodel

Major Kitchen Remodel - Mid-Range

Major Kitchen Remodel - Upscale

Update outmoded 200-square-foot kitchen with 30 LF of top-of-the-line custom cherry cabinets with built-in sliding shelves and other interior accessories. Include stone countertops with imported ceramic or glass tile backsplash; built-in refrigerator, cooktop, and 36-inch commercial grade range and vent hood; built-in warming drawer, trash compactor, and built-in combination microwave and convection oven. Install high-end undermount sink with designer faucets, and built-in water filtration system. Add new general and task lighting including low-voltage under-cabinet lights. Install cork flooring, cherry trim.

Replacement

Devout followers of the Cost vs. Value Report, people with photographic memories, and pack rats with easy access to a library of REMODELING back issues know that replacement projects are historically the most cost-effective remodels for homeowners to undertake. This year is no exception.

Of the top 10 projects as measured by cost recouped at resale, seven -- including the first three -- are replacement projects. Nationally, fiber cement siding replacement returned 88% of the investment. Midrange vinyl siding replacement was nipping at its heels at 87.2%, and midrange wood window replacement edged out minor kitchen remodeling for third at 85.3%. Only roofing replacement -- at either price point -- finished outside the top 10 projects, at 73.9% for a midrange job, and 72.9% for an upscale one.

Energy efficiency in the face of high fuel prices is a logical explanation, but Charlie Gindele, president of Dial One Window Replacement Specialists, Santa Ana, Calif., calls that a rationalization. "The thing that motivates people, by and large, is the aesthetics," he says.

Amy Mills Siler, a salesperson at Joan Ryder and Associates Real Estate, in Bel Air, Md., agrees that most home buyers are looking for a house with curb appeal. "If you drive up to a house with dingy aluminum siding and old windows, the buyer automatically gets a bad taste in the mouth," she says. "The old saying 'Don't judge a book by its cover' falls on deaf ears with most clients."

Working in Orange County, Calif., where housing prices are through the roof, Gindele says that the return on the investment is just an added bonus to homeowners who undertake the projects for a variety of benefits. "They do it because they want the ease of operation, the beauty, the sound-deadening component," among other things, he says. "But it is nice to recover your expense."

Replace Roof - Mid-Range

Replace Roof - Upscale

Replace Siding - Mid-Range

Replace Siding - Upscale (fiber-cement)

Replace Siding - Upscale (vinyl)

Replace Windows - Mid-Range (wood)

Replace Windows - Mid-Range (vinyl)

Replace Windows - Upscale (wood)

Replace Windows - Upscale (vinyl)

Replace 10 existing 3-by-5-foot double-hung windows with insulated, low-E, simulated-divided-light vinyl windows. Simulated woodgrain interior finish; custom-color exterior finish. Trim exterior to match existing; do not disturb existing interior trim.

Sunroom Addition

Two-Story Addition

Add a first-floor family room and a second-floor bedroom with full bath in a 24-by-16-foot two-story wing over a crawl space. Add new HVAC system to handle addition; electrical wiring to code.

Family room: Include a prefabricated gas fireplace; 11 3-by-5-foot double-hung insulated clad-wood windows; an atrium-style exterior door; carpeted floors; painted drywall on walls and ceiling; and painted trim.Bathroom: 5 by 8 feet. Include a one-piece fiberglass tub/shower unit; standard white toilet; wood vanity with solid-surface countertop; resilient vinyl flooring; and mirrored medicine cabinet with built-in light strip; papered walls; and painted trim; exhaust fan.

Bedroom: Include walk-in closet/dressing area; carpet; painted walls, ceiling, and trim; general and spot lighting.

Master Suite Addition - Mid-Range

Add a 24-by-16-foot master bedroom suite over a crawl space. Include walk-in closet/dressing area, whirlpool tub in ceramic tile platform, separate 3-by-4-foot ceramic tile shower, and double-bowl vanity with solid surface countertop. Bedroom floor is carpet; bath floor is ceramic tile. Painted walls, ceiling, and trim. General and spot lighting, exhaust fan; electrical wiring to code.

Master Suite Addition - Upscale

Add a 32-by-20-foot master bedroom suite over a crawl space.

Bedroom: Add a spacious sleeping area with lounging/sitting area adjacent to large master bath. Include custom bookcases and built-in storage with millwork details; high-end gas fireplace with stone hearth and custom mantle; and large walk-in closet/dressing area with natural light, mirrors, and linen storage. Add French doors accessing a veranda, balcony, or other outdoor space.

Bath: Include a large walk-in shower with dual shower system, stone shower walls and floor, and custom frameless glass enclosure. Add corner-design whirlpool tub bordered on two sides by windows and built into granite or marble platform with custom cabinet front. Include two sinks in separate custom vanities with stone countertops and large mirrors. Create partitioned area for luxury one-piece toilet.

General: Add hospitality center with bar sink, under-counter refrigerator, custom cabinetry, granite or marble countertop, and microwave. Include soundproofing, in-floor heating, custom wall finishes and hardware, general and spot lighting, and lighting controls.

Deck Addition

Add a 16-by-20-foot deck using pressure-treated SYP joists supported by 4x4 posts set into concrete footings. Install composite deck material in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing system using either a matching system made of the same composite as the decking material or a compatible vinyl system.

Family Room Addition

In a style appropriate to the existing house, add a 16-by-25-foot room on a crawl space foundation with vinyl siding and fiberglass shingle roof. Include drywall interior with batt insulation, pre-finished hardwood floor, and 180 square feet of glazing including windows, atrium-style exterior doors, and two operable skylights. Tie into existing HVAC. Add electrical system to code, including 12 recessed ceiling lights.

Home Office Remodel

Convert an existing 12-by-12-foot room to a home office. Install custom cabinets to include 20 LF of laminate desktop, computer workstation, and wall cabinet storage. Rewire room for computer, fax machine, and other electronic equipment, as well as cable and telephone lines. Include drywall interior, painted trim, and commercial-grade carpeting.