Cost and Value of Home Remodeling Drops,Makes Spray Foam Insulation A Wise Choice

U.S. homeowners who made inexpensive renovations have better gains than those who invested in bigger projects. Home improvement treatments such as weatherization and spray foam insulation that allow households to save on energy and utility cost has never been more timely.

According to the Cost versus Value survey conduced by Remodeling Magazine, the homeowners who renovated their homes in 2011 only got back 58 cents in home equity for every dollar spent. The figure is lower compared to 2005 when a renovation would pick up 76 percent of the cost of remodeling.

Roof replacement, wall and door repairs earn 64 percent back in resale value. The average of gain after remodeling cost is 57 percent.

The statistic shows that prices of services, tools, and materials have become important factors, according to Remodeling Magazine’s editorial director, Sal Alfano. Homeowners are now more keen on investing in projects that would give them as much price value back, and home treatment services that provide long term cost-saving measures such as spray foam insulation and energy auditing.

In 2011, the average home renovation cost $44,734, a slight drop from last year’s 45,593. Resale value however dipped significantly, with a 3 percent loss in cost-value ration.

Homeowners should welcome the prospect of contractors slashing their prices to stay competitive in the current real estate plateau.  Remodeling projects have become more affordable as a result. Alfano added the scarcity of commercial construction projects being done, making way for more remodeling projects. The cost of materials, however, remains the same.

Alfano thinks the lull in home renovation is temporary and projects will start to pick up before the end of 2012. By 2013, Alfano expects a bigger growth rate.

Projects that are less costly have become more popular, such as window repairs and garage door replacements, and installing energy-saving treatments like spray foam insulation. Another popular project is those that add and maximize space without increasing house size.

According to the survey, mid-range replacement of the front door has the highest cost-to-ration value, which costs an average of $1,238 and increase the house sales price by $903–73 percent of the initial cost. However, those who opted for the high-end fiberglass door replacement, which cost $3,536, increased the house’s sale value by 56.3 percent.

But families usually forgo renovation when trying to sell the house. When think about a major remodeling project, homeowners shouldn’t considering the resale value as a deciding factor, said Alfano.

Homeowners should think of how long they intend to remain in the house and whether the project will be beneficial to them in the long run, if will bring convenience and allow for savings. To add a family room, an average of $83,118 is needed, which has a resell value of 60.2 percent or 50,004. They will spend $33,114 that they will not recover once the project is done. If, say, they family will stay in the house for a decade, they should consider if the $3,311 price tag on extra space per year is a smart and affordable choice.

If you are interested in spray foam insulation and other cost-effective home improvement projects that help reduce your utility bills, visit: www.ecostarfoam.com or call 504-383-3261.