Cost vs. Value is sponsored by:
Construction cost estimates were generated by RemodelMAX, a publisher of estimating tools for remodelers, using Clear Estimates remodeling software. The company prepares a detailed construction estimate for each project, and then adjusts this baseline cost for each city to account for regional pricing variations. Construction cost figures include labor, material, and subtrade expenses, plus industry-standard overhead and profit. However, project costs are based on estimates for generic projects and do not account for personalized design and product choices made by homeowners in connection with actual remodeling projects, nor do they account for local and short-term fluctuations in pricing, supply and demand, and other factors affecting cost.
Resale value data for each project was aggregated from
estimates provided by members of the National Association of REALTORS® in
cooperation with REALTOR® magazine. An online survey containing project
descriptions and three-dimensional illustrations, plus construction costs and
median home prices for each city, was linked via email sent to some 200,000
appraisers, sales agents, and brokers. Respondents were instructed not to make
judgments about the motivation of the homeowner in either the decision to
undertake the remodeling project or to sell the house. The survey for this 2014
data was in the field for approximately 10 weeks between August and October,
2013. More than 4,500 NAR members participated.