Archive for the ‘remodeling’ Category

San Francisco Remodeling Cost Vs. Value, 2015

 

Even with San Francisco real estate prices at record highs and among the most expensive in the country, flipping properties is still both profitable and fairly common. Many properties that appear on the market as fixers over the past few years have returned and been resold as renovated (if not completely rebuilt) turn-key homes. Here’s a home in Noe Valley, purchased for $1,575,000 in 2012 that was flipped and sold in June 2015 for $7,000,000 (of course, well over asking price):

 

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553 Elizabeth Street: 2014 vs. 2012

Coincidentally, for the longterm homeowner, incredible appreciation during this short time has created equity to invest in one’s own property. Almost anywhere you travel in San Francisco you’re bound to see at least one home shrouded in scaffolding. So, whether considering a major renovation or a remodel of a smaller scale, which home improvements have the best pay-off?

 

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Click here to view the full 2015 Cost vs. Value Report

 

TIP: If you’re thinking about doing some work on your home, spend a weekend attending open houses in your neighborhood doing market research– note which design features inspire you, and compare good remodels to bad ones.

 

See also: An Entire Year of SF’s Most Heart-Stopping Flips from CurbedSF

 

Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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San Francisco Real Estate and the Holidays

Happy Holidays from San Francisco!

Happy Holidays from San Francisco!

Are you thinking of buying or selling your home? Perhaps you’re expanding and considering your current home as an investment property and entering it in the rental market? The 4th quarter is historically filled with low-inventory and quiet real estate offices. The holidays are a wonderful time to begin exploring your options.

To begin, set your financial house in order. File tax returns early to ease the process and align with a trusted mortgage lender. Connect with your financial planner to gage stock option sale limits and advantages.

Next, engage a San Francisco realtor. Reach out to friends and family or visit Yelp for community reviews. Most importantly interview a few experienced agents to find a comfortable relationship. Agents will schedule a no obligation initial meeting to discuss your needs and present their skills, strategy and network of professionals to aid in your property transition. A strong realtor is a resource, listening to your interests and priorities to best leverage their knowledge and experience in your market place.

The value of a realtor rests in advising informed decision making, negotiating contracts, competitive advantages and mitigating risk. The holidays are an excellent time to build a relationship with an agent. The limited competition gives agents the extra time and edge to gather property comparisons, market knowledge and customize a team of real estate professionals to represent your interests.

An agent’s thorough preparation prior to sale offers tools to increase the value of your home. A talented realtor will schedule a walk-thru of your property and suggest maintenance and improvement upgrades to maximize your return on investment. An agent will advise on market timing and conditions and design a comprehensive marketing presentation, including home staging, internet marketing, traditional marketing and activate industry networks to improve matching buyers and sellers.

The rental market in San Francisco is amazing. Would you like to be advised on the value of your property in the rental market? According to Colliers Research Report, all rental markets are showing growth of 12% over the past 12 months. This may warrant keeping your current property and expanding to a new one. A seasoned expert will address your lifestyle needs and financial interests to secure a smooth and successful transition.

Beginning the process of buying, selling or renting your San Francisco real estate over the holidays, results in an organized, detailed and opportunistic endeavor. To schedule a no expectation conversation with Zephyr Real Estate Broker and Assistant Sales Manager Rita Roti, please email rita@ritaroti.com or call (415)432-2114. Cheers and happy holidays!

Rita Roti is a broker associate / assistant manager at Zephyr Real Estate and can be reached at Rita@ritaroti.com.

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Thinking of Remodeling? The Value of Home Improvement – Part 1

Smart upgrades are worth it. Every year a company called Cost vs. Value,  releases a national survey comparing the cost of some of the most popular remodels to value received at resale.  Costs are set up on a per region basis, with San Francisco falling under the Pacific (which includes Oregon and Washington states).  The caveat if you are a city homeowner is, everything in San Francisco is going to be more expensive than our regional aggregate.

The annual survey then collects input from REALTORS® in 80 cities to rank home remodeling projects according to those that bring the greatest cost recovered at resale. And looking at the three projects that topped the list, it’s clear that first impressions really do matter when sellers list their home.

Big-bang projects can make or break a sale from the moment potential buyers exit their car. A midrange entry door replacement brings the highest payback at a national average of 102.1 percent, followed by a midrange garage door replacement, at 83.9 percent, and an upscale redo of the siding at 80 percent of the cost. Step into the home, and a midrange kitchen remodel recoups an average 72.8 percent. Gaze into the backyard, where a wood deck addition also generates a 72.8 percent return. The methodology for Remodel Magazine’s cost breakdowns can be found: here.

PROJECT 1: Entry Door Replacement (Steel) … Cost $1,218 … Resale value $1,243 … Cost recouped 102.1%

PROJECT 2: Garage Door Replacement … Cost $1,291 … Resale value $1,083 … Cost recouped 83.9%

PROJECT 3: Siding Replacement (Fiber Cement) … Cost $13,382 … Resale value $10,707 … Cost recouped 80.0%

Cost vs. Value: Help Clients Stretch Their Remodeling Dollars [realtor.org]

Next Post: Will removing a bedroom impact your resale value?

Meredith Martin is a life long resident of the bay area and a real estate professional with over 15 years experience. She can be reached at mm@meredithmartin.com.

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Home Projects That Are Worth Remodeling

Remodeling, Addition & Replacement Costs & Percentage Recouped Upon Sale

The 22nd annual, Remodeling- Cost vs. Value report has been released for 2009/2010. The report consist of the relationship between remodeling costs and resale value by comparing national and regional averages for 33 popular remodeling projects.

This is what Hanley Wood, LLC had to say about the San Francisco averages.

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Remodeling Costs for San Francisco Real Estate Jobs

The 2007 Cost vs. Value Report establishes cost-to-construct benchmarks for a set of common remodeling projects, then estimates how much of that investment will be recouped at resale in the current market.  It’s a must read for those needing more space, like many of my clients with growing families, but are weighing the risk/reward for selling and upgrading in this kind of market.

San Francisco Job Costs:


“What the Numbers Mean

When comparing cost estimates for actual projects, remember that averaging tends to have a leveling effect on “Job Cost” data from the 2007 Cost vs. Value Report. And as always, seemingly small differences in size, scope, or quality of finishes can dramatically affect final project cost.
It’s also important to consider whether a remodeled space reduces the perceived number of rooms or available square footage. For example, carving a half-bath out of unused storage space under a stair case is an obvious gain in usable space. But converting an existing bedroom into a master bath, while a positive development in many respects, may reduce the total number of bedrooms below the minimum expectation of typical prospective buyers.”

The full article can be found here on the Handley Wood Remodeling website, and is quite the interesting read. (The 2008/09 numbers are due out soon).

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