Real Estate: Return On Investment (ROI)
Are you thinking about selling your Central Oregon real estate or remodeling the house?
Depending on what type of improvements you want to make, when you go and sell your house there is only so much that you will get as a return on your investment (ROI). The price for the materials to do the project has gone up, the return on those projects have gone down In the last five years (2003-2007). The return on a core project in 2003 would be 82.5% (nationwide), but as of 2007 the estimate ROI is only 70%. A steady roll downward for the last 5 years except in 2005 where it spiked to 86.7%.
These statistics are based on nationwide reports and surveys. One project done in two different climates will yield different returns. Most commonly affected is pools. The pool will have a better return in States like Florida and California than it would in the northeast (New England) area.
A site that I found lists the projects as well as their return on investment. The site is Remodeling magazine.com. According to them the best ROI project is a (wood) deck addition with a return of 85.4%. Following behind that is siding replacement (83.2), minor kitchen remodeling (83%) and to finish out the top five would be window replacement (wood 81.3%) and (vinyl 79.3%).
The site also added some upscale projects estimates, as a deck built with new composite materials which have a long life than the wood decks.
If you’re someone who is looking for a good deal on a house (I know there’s a few), This list can help you in more ways than one. The list can give you a starting point in your negotiations. If you’re like me, you’ll know how to shop for better pricing than the list. Play your cards right and you can save a bundle.
