[00:00:00] Eric Goranson: It's around the house. So if we go back to the, to the national average on bathroom edition, upscale, average job cost for that a hundred square feet, $104,733. Resale value, 27,830. Cost recoup 26.6%. That's the national average. Now, if you want to compare that to Seattle, which I'm describing. Having another West Coast city here, the average there for that price is 132,877 with a resale value of 34,000.

[00:00:39] Eric Goranson: So your cost recouped is 25.6%. I tell you what that is a return on investment that is poor when it comes to remodeling and renovating your home. There is a lot to know, but we've got you covered. This is around the house. Welcome to the Round the House Show. This is where we hope you get the most outta your home through Infor.[00:01:00]

[00:01:00] Eric Goranson: And education. Thanks for joining us today. We've got a great show lined up here, which is gonna help you probably navigate your remodeling and construction projects for this year and next year. Uh, this is gonna be a jam packed. Hour of information for you first though, before we jump into, uh, the cost versus value report of what things cost and of course what things give you a return on that value.

[00:01:25] Eric Goranson: I wanted to say, hey, thanks for, uh, joining the Around the House Insider for all of you out there in the podcast, world Radio. We really appreciate you as well. We've got, uh, our new subscription service, which gets you the, uh, back catalog. And, uh, if you're a podcast listener, you get to get the podcast early.

[00:01:43] Eric Goranson: For more information about that, head over to around the house online.com, and you can catch the podcast there. Well, today we're talking cost versus value, and these are some of the things that, uh, you know, what's your return on the investment? And this is, there's, they really [00:02:00] remade this whole thing. This last year, uh, the whole program used to be by Remodeling Magazine.

[00:02:06] Eric Goranson: I believe it's now run by Zonah Media. But they really changed things up. They changed, uh, some cities. They added some more relevant topics, which I love, and let's dive in here. One of the biggest ones is a controversial one, and this is one that, um, some people are really deciding to, you know, stick their, their sword in the ground and fight the battle.

[00:02:30] Eric Goranson: But H V A C conversion, electrification. So if you're gonna go over and change things up and, and like anything with the cost versus value report, you need to pay attention to what's on the list and what the description is because that's all about the project description, cuz what you think might be a high end, might be a low end or a mid or vice versa.

[00:02:54] Eric Goranson: So let's talk a little bit about. What their lists are here, what they say in HVAC [00:03:00] conversion is that electrification is convert a fossil fuel burning furnace to electric heat pump for heating and cooling. For a 2000 square foot home, remove a dispose of the existing furnace, uh, you know, recycling ductwork from basement.

[00:03:14] Eric Goranson: Crawlspace, uh, project assumes here's a key one. No asbestos exists on the furnace or existing ductwork, which is good. Uh, remove grills, patch, drywall, touch up paint on ceilings, areas to cover over 10 existing supply ducts and two return ducts. So basically this is putting in a new double pole. 40 a breaker for service panel.

[00:03:34] Eric Goranson: Uh, this is a brand new heat pump installation, so this is really cool. So this is a, uh, 48,000 B t u inverter type heat pump, five line sets. So this is really putting in getting rid of the old oil or gas furnace and putting in a minis split heat pump with all the other work in it. So this is really important information guys.

[00:03:57] Eric Goranson: So this is a good one here. [00:04:00] So if you're gonna get rid of that whole system and put in a brand new heat pump job cost for the, uh, national average $17,747 with a resale value of 18,366. So that's 103.5% national average. Now, here's what's interesting. If you go to Seattle, that's even more expensive. But you get a similar return.

[00:04:30] Eric Goranson: $22,907 is the job cost with the resale value at 23. So either way, you're still getting 103.4%, so that's really good. Uh, Pacific out here on the West Coast, that's 104.8% average, so a little bit more. And that's pretty good right there. Now that is just. They're saying 18 to 22, almost 23,000 here.

[00:04:56] Eric Goranson: Depending on where you are using the national average, of course you can go [00:05:00] over, uh, and, and check your local area for that exact number, but that's about what it's costing to, to remove your old furnace system and put in. A brand new heat pump system in a mini-split type category. So that gives you a really good idea.

[00:05:15] Eric Goranson: But the, here's the interesting part is you're getting more out of it. So it's actually a, a really good investment in your home. And one, it's gonna save you money too. It's going to, uh, help you with the cost recouped if you go sell it. So you're increasing in the value. And that's really where it gets interesting is some of these cost recouped are absolutely horrible.

[00:05:37] Eric Goranson: And I mean, and, and a great example here we're gonna go into, um, let's, let's dive into bathrooms for a minute here. Uh, bathrooms are a very common remodel project as well as one of those that, uh, that you see out there that is probably one of the most likely if you've hired the wrong contractor to go sideways.

[00:05:59] Eric Goranson: I think I have [00:06:00] more bathroom issues that I get from my viewers and listeners. People like you. Of contractors that have taken 'em over bathrooms. So it's a high risk category as well of you can have the, the, a beautiful contractor or you can have someone to a house that I was at here a couple weeks ago that, uh, all three bathrooms are gonna have to get gutted back to the studs because it was done that poorly.

[00:06:22] Eric Goranson: And these people are out, you know, over a hundred thousand dollars. So this is one of the things we gotta be really careful with. Now if we start looking at averages here, probably the worst one in the national averages that I see is a bathroom edition that is upscale. So let me go over here to Bathroom Edition, upscale and, and get you that number because upscale is kind of an interesting one because what we might call upscale, you might not call upscale.

[00:06:49] Eric Goranson: And this is really interesting. So if we go to Bathroom edition upscale, We're gonna add another. We're gonna add a new a hundred square foot [00:07:00] master bath to existing master bedroom over crawlspace. Include a 42 by 42 neo angle shower. Nobody's gonna do that with ceramic tile walls, accent strip recess, shower caddy, body spray features frameless glass and closer free standing soaker tub with high-end faucets.

[00:07:16] Eric Goranson: Stone countertop with two sinks, two mirrored medicine cabinets with lighting. You know you get where I'm going here. Nice one piece toilet, good exhaust fan, all the things that you would do, you know, waterproof, shower fixture cabinetry, extend hvac, electric in floor heating. So yeah, that's a good bathroom addition, upscale.

[00:07:38] Eric Goranson: So if we go back to the, to the national average on bathroom edition, upscale, average job cost for that a hundred square feet, $104,733. Resale value 27,830. Cost recoup [00:08:00] 26.6%. That's the national average. Now, if you wanna compare that to Seattle, which I'm just grabbing another West Coast city here, uh, which I'm gonna compare it to, the average there for that price is 132,877 with a resale value of 34,000.

[00:08:20] Eric Goranson: So your cost recouped is 25.6%. So if you're doing a master bathroom addition or a bathroom addition like that, I tell you what that is a return on investment that is poor and that's a project that you're gonna tackle because you want to, cuz there's a lot better places to spend money. And, uh, 26.6 as a national average isn't good.

[00:08:49] Eric Goranson: And, uh, we'll dive into more bathrooms here in a little bit because I tell you what, this is where it kind of opens your mind up because there's a lot of different bathroom model things here that we can talk about today [00:09:00] in the next segment, because I tell you what, it's, it's a, a good learning experience.

[00:09:04] Eric Goranson: The average bathroom model in mid-range, and we'll talk about this when we come back to have somebody come in and do this. $24,606 and this is your typical hall bathroom. We have the five foot tub at the end, the little vanity, the toilet, and you got that tub shower, and uh, that does bring you a 66.7%.

[00:09:26] Eric Goranson: Cost recoup, but your resale value on average is only $16,413. We'll talk about what goes into that 24,000 just as soon as around the house returns. Why

[00:09:46] Eric Goranson: should I be loud, be so hot?

[00:09:57] Eric Goranson: Many people[00:10:00]

[00:10:10] Eric Goranson: welcome back to The Round The House Show. This is where we help you get the most outta your home through information and education. Thanks for joining us today. Well, hey, if you're looking for my YouTube videos for my show, easiest place to find them for the TV show is go over to around the house.

[00:10:24] Eric Goranson: online.com and just go over the website there. You can find the videos on the front page of that, and then when you click on it, you can actually look at the playlist and see the other 80, 81 videos that are up there today over there. We've got some great stuff. It's not all just home improvement. We are talking to, uh, different people.

[00:10:41] Eric Goranson: We went out and visited, uh, Pendleton, Woollen Mills last week. Uh, watched him take raw wool and make it into, uh, clothing and blankets. And of course there was so much more that we talk about, including an amazing tile backsplash that we show from start to finish on the best way to do that. All right, [00:11:00] well, let's get back to our cost versus Valley report.

[00:11:01] Eric Goranson: When we went to break, we were talking about what the average price of a bathroom model was, kind that hall bathroom and the national average in the US is 24,606, but let's go talk about the details here that really make this a big deal. So when we come into this, if you go into the bathroom remodel here, mid-range, this is kind of where it gets interesting.

[00:11:26] Eric Goranson: You're gonna update a five by seven foot bathroom, replace all fixtures. So the 30 by 60 inch porcelain on steel tub with a four by four ceramic tile surround. Who does that by the way? Put in a steel bathtub with four by four tile. So it tells you how cheap of remodel this is. New single lever temperature and pressure balance, shower control, uh, meets code standard white toilet solid surface vanity counter with integral sink recess medicine cabinet with light ceramic tile floor vinyl wallpaper.

[00:11:55] Eric Goranson: Okay, guys, what are we missing there? We're not changing the floor out. [00:12:00] You notice there's no addition. There's no mention of the floor and there's nobody changing out the cabinet either. So that tells me that you're keeping the exact same floor and, oh, sorry. No, we are doing a ceramic tile floor, but you're using the same cabinet.

[00:12:18] Eric Goranson: They're not doing a cabinet in that. So that's an interesting one. So you're reusing the cabinet, so that's what gets you that $24,000. That is not any kind of an upscale. Now if you want to go to a bathroom remodel that's upscale, where you're looking at something a little bit nicer on the national average, let's talk about that for a bit.

[00:12:41] Eric Goranson: Um, and that's where it gets interesting. This is that upscale versus mid-range. Their mid-range is entry level. It is builder basic. And that's one thing to remember when you're looking at these things. All right, so our bathroom model upscale, which is a little bit different of course, but you can kinda get an idea here.

[00:12:57] Eric Goranson: You're gonna expand an existing 35 square foot [00:13:00] bathroom, which is small. It's like a sheet of plywood if you think about it, to a hundred square feet within the existing house footprint. Relocate all fixtures include 42 by 42 inch new angle. Shower with ceramic tile walls and accent strip recess, shower caddy, body spray features.

[00:13:14] Eric Goranson: Soaker tub with high-end faucet. Stone countertop two sinks. Two mirrored medicine cabinets with lighting. Uh, compartmentalized commode area with one piece. Toilet exhaust fan you're gonna use matching ceramic tile on the floor. Diagonal ceramic tile base molding, new lighting, waterproof lighting fixture in the shower.

[00:13:34] Eric Goranson: Cabinetry has custom drawer base wall cabinets extend HVAC electric in floor heating. So that is a upscale, and to be honest, probably a more common. Bathroom that you would see out there. And so what are the averages for your average, kind of what I would say, a normal bathroom hold onto your wallet.

[00:13:52] Eric Goranson: $76,827 is our national average out there. So if you're gonna do a, uh, a, [00:14:00] a, a standard bathroom remodel with what most people would put in there, national average, 76,827. Now, if you pop over to Seattle, Theirs is 96,689,000, but here's where it gets crazy. In Seattle, the cost recoup is 31.6%, so for the 96,000, almost 97,000, you get 30,000 back.

[00:14:30] Eric Goranson: On the national average, you're paying $76,827 of the contractor, and you're getting 28,203 bucks, so you're getting 36.7% back. So that right now is not a good return on your investment. Now, if you're gonna be in the house for 15 years and you wanna enjoy it, nothing wrong with that. So that's a big one right there.

[00:14:53] Eric Goranson: So let's go over here. Um, we're gonna pop away from bathrooms for a minute here, and I want to go over and talk about some of the things that are gonna give you [00:15:00] a better return on your investment. Cause I tell you what, that one's horrible. One of the best ones out there is a garage door replacement. Now, national average.

[00:15:14] Eric Goranson: And actually we'll talk about, first let's talk about the description here on the garage door replacement, because that's a key here. Again, what kind of garage door are we putting in there? Right. Remove and dispose of an existing 16 by seven foot garage door and tracks install new four section garage door on a new heavy duty galvanized steel tracks reuse the existing opener.

[00:15:32] Eric Goranson: New door has a lifetime warning made with highten strength steel with two coats of factory applied paint foam insulated. Um, Windows on the top panel are are half inch insulated glass hardware includes galvanized steel hinges and ball bearings, urethane rollers. So nice, decent garage door. Not the builder, basic one, but a nice one.

[00:15:50] Eric Goranson: So when you look at that, this is what I love. National average, 43 0 2 4,302 bucks. Resale value, [00:16:00] 4,418 bucks with 102.7% cost reco. Now if you're in the Seattle area, 5,034 is the job cost 44 64. So you get 88.7% of the cost recoup. Where on the West Coast? On average it's at about 47. So you still get 96.8.

[00:16:20] Eric Goranson: So you're still doing good. But see, these are the things and what are the rules that I've noticed when it comes to getting your money back on a project? One of the things that I've really noticed is if you really wanna get that money back many times. Just getting that curb appeal is where you see a lot of this money, and that's where the money shows up as far as getting that return on investment.

[00:16:44] Eric Goranson: And that's a key right now is getting some of that money back. Now let's go into another one here. This is an interesting one here too. Going back on that, if we look at a let's go manufactured stone veneer. Uh, [00:17:00] basically putting that stone veneer on the front of the house. $10,925. Resale value is 11,177 bucks, so you get 102.3% on a national average.

[00:17:14] Eric Goranson: Now in Seattle, it's of, of course, cost about 12 83, 12 8 90, actually 12,893 bucks, $11,183 recoup. So you're getting 86.7, so you're still getting. A really good return on your investment there. And again, that's because you're going through and doing that. Now, as far as scope of what you're doing, let me uh, give you a quick description on that because that's really, you're gonna take 300 square feet of continuous band of existing vinyl siding from the bottom third of the street facing facade replaced with adhered manufactured stone vidder.

[00:17:49] Eric Goranson: So you got, uh, 36 lineal, feet of sills, 40 lineal feet of corners, and, uh, going through, Mortar scratch coat, doing that whole thing. So that's kind of what your scope and the [00:18:00] materials are. Cuz again, like we talked about on this kind of project, it's all about the scope and what their description is. And so that's just basically going across the front three feet up.

[00:18:10] Eric Goranson: And, uh, that manufactured stone veneer on average is gonna cost you about 10,925 bucks across the us, which, you know, not too bad, especially if you get on average 102.3%, you're getting some money back outta that project. More of the cost versus value report just as soon as around the house returns.[00:19:00]

[00:19:10] Eric Goranson: Welcome back to The Round The House Show. This is where we help you get the most outta your own through information and education. Well, we've been talking about the cost versus value report, and that's, uh, cost versus value.com. You can find it over there and, uh, I've been taking a look at some of these numbers cuz they really revamped it this year.

[00:19:27] Eric Goranson: And in this segment here we're gonna talk about more about things that give you great returns out of this. And in previous segments here, if you were listening on the radio, we talked about some bathroom models. We talked about, uh, you know, garage door replacement and how good of a deal that is, as well as HVAC conversion and of course manufactured stone veneer.

[00:19:48] Eric Goranson: Well, there's another couple ones in here that of course showed up really high on the numbers, which I like. Entry door replacement in steel. Your average [00:20:00] return cost versus value across the US as an average is a hundred 0.9%, so costs you about $2,214 to have that door replaced, and the retail value of resale is at 2235, so it comes out pretty good.

[00:20:16] Eric Goranson: Now, it really depends on where you're located. Here's what's funny. In Seattle for instance, that number is almost twice as expensive. For that seal door than it is on the national average. So in Seattle, that cost is $4,063, but you only get the 2239 return. So it only gives you a 55.1% return. And so this is some of the things where this cost of living, which has gotten outta control.

[00:20:48] Eric Goranson: Lack of the trades cuz you know, in the Seattle area, like many on the west coast have really removed trade programs from schools. And so there's a shortage of those trades and that's why you start [00:21:00] to see the difference between 2214 is a national average and $4,063 for the same exact job. And so that's kind of the price we're paying for these many of the school districts.

[00:21:14] Eric Goranson: Removing those programs for 15 or 20 years or more. And so that's some of the stuff we see. Now, let's get into another one that's pretty good number here. Siding replacement, fiber cement. Now what's interesting with this is it's kind of the opposite of what we were just talking about. So let me read you the, um, The fiber cement kind of specifications here, so you know what we're talking about.

[00:21:41] Eric Goranson: So replace 1,250 square feet of existing siding with new fiber, cement siding, factory primed and factory painted and installed. The manufacturer specs include factory trim, atol openings, and corners. And so that's where it is. And now this is kind of on, because we get some opposite [00:22:00] reactions here on the numbers.

[00:22:02] Eric Goranson: Compared to what we were talking about earlier. So fiber cement, in average, you're talking about a $19,000, 19,361 is the cost to do that. So you're gonna pay 19,000 bucks to have that installed, and you have a $17,129 return to, on the national average, 88.5%. Now, here's where it gets crazy if you live in Seattle.

[00:22:30] Eric Goranson: It's cheaper there. And that's because there's so many people replacing siding up there cuz of the weather, everything else. And there's a pretty competitive market with that. So $15,613, so $4,000 less for that fiber. Cement siding, the return on investment is huge. 23,620. So fiber cement siding in the Pacific Northwest is 151% return.[00:23:00]

[00:23:00] Eric Goranson: That is the largest return on here. So that is good money adding value to your house. We're on the west coast, it's only an 86.9% return. So interesting how that goes. Um, I know there's a ton of siding companies and they are very fast at putting the stuff in and uh, the west coast is not a vinyl siding really market.

[00:23:25] Eric Goranson: And so here's what's interesting, vinyl siding. Is almost the exact same cost, you know, and then a few grand. So 16,348 as a national average with a $15,485 resale value. So final sighting has a 94.7% return in the national average. But if you go over to Seattle in an example, S vinyl siding, which to me is not as nice as fiber cement.

[00:23:59] Eric Goranson: [00:24:00] That's $19,000. 19 7 64. So you get a n and uh, the return on the investment is 19, so not as good as fiber cement. So it's only a 99.2% return. So it's funny how that goes because of it not being a hot item in the Pacific Northwest, it costs you more so it hurts your return. And fiber cement is actually cheaper.

[00:24:24] Eric Goranson: Then vinyl siding in the Seattle marketplace, and it shows about average with that. Um, vinyl siding on the, on the, in the Western US is not as popular. It is in the Midwest and the East coast or the south. So you're seeing those numbers go different, you know, with that. But it's fascinating how much that changes things around and what those percentages are.

[00:24:47] Eric Goranson: And so when you're looking at this cost versus value report, and you can go over to their website and take a look at, put your zip code in. Take a look at it and find your area to get your numbers. And that's the beauty of this is they cover a lot of different places [00:25:00] around to do that. And so that's really great.

[00:25:03] Eric Goranson: So that's some of the big numbers in here. Uh, on the national average, that's most of them here. Now here's another one here. Minor kitchen remodel, mid-range. Now this is where we gotta stick to the basics here cuz minor kitchen remodel. This is not a regular kitchen remodel, but a minor kitchen remodel.

[00:25:23] Eric Goranson: Mid-range, and this is where it gets kind of interesting. In a functional be dated 200 square foot kitchen with 30 lineal feet of cabinetry and countertops. You're gonna leave the cabinet boxes in place, replace fronts with new shaker wood panels and drawer fronts, including new hardware, replace cooktop, oven range, and slide and refrigerator with a new energy efficient model.

[00:25:46] Eric Goranson: Replace laminate countertops, a new laminate. Install mid-price sink and faucet. Add new vinyl flooring, finish with painted walls, trim and ceiling. So this is a really flipper basic, you know? Okay. [00:26:00] We're gonna put in new doors and drawers. We're gonna do kind of a reface, put some fer mica countertops on it, and some vinyl flooring and some painting appliances, and we got it dialed in.

[00:26:12] Eric Goranson: That's all that is. There's no granite, there's no backsplash, there's no anything going on there. Okay, so when we get into this, this is where the numbers start coming in here. So if you look at minor KRI model, mid-range, your job cost as a national average is 26,790. Resale value adds 22,963. So it's an 85.7% return if you got on the West Coast here.

[00:26:39] Eric Goranson: Um, It's costing you a little bit more, $28,057 at a 79.2% cost recoup. And in Seattle the numbers are a little more $30,000 and a 21,963, so about 22,000. So you get a 73.2%. [00:27:00] Now here's where it gets crazy because not many people get excited about that. Let's talk about the major. Kit model upscale, because this is a really big one here.

[00:27:10] Eric Goranson: And actually we're gonna be running outta time here in just a second. So we'll, we'll talk about this and I'll give you the numbers afterwards. But let's talk about what goes into a luxury kit model. So if we go into a major kit model upscale, that is a updated outmoded, um, outmoded 200 square foot kitchen with 30 millennial feet.

[00:27:30] Eric Goranson: Top of the line, custom white cabinets with built-in sliding shelves, other interior accessories, stone countertops. Glass tile, backsplash, built-in fridge, commercial cooktop, van hood, wall oven built-in microwave. You're gonna have an high-end undermount sink with designer faucet, maybe a water filtration system, new task lighting, tile, or similar flooring that looks like wood.

[00:27:52] Eric Goranson: So that is a major kitchen remodel. And so that's what that is right there. And that's a pretty good, [00:28:00] that's a pretty good place to be as a nice kitchen remodel now. This is where the numbers get crazy, and actually we'll talk about this when we come back because what they say a major hit history model is.

[00:28:12] Eric Goranson: Man, I tell you what, this gets really expensive quick and, uh, we're not talking that $27,000 that we saw on the mi on the minor. When we come back, we'll talk about what those numbers are. Hold onto your wallets, folks. We'll talk about that just as soon as around the house returns.[00:29:00]

[00:29:02] Eric Goranson: Welcome back to The Round the House Show. This is where we hope to get the most outta your home through information and education. We've been talking about the 2023. Cost versus value report. And kind of taking a look at, uh, I picked the city other than Portland. I picked Seattle just to give you kind of an idea of what it is out here on the West coast for all of you.

[00:29:18] Eric Goranson: None in the Pacific Northwest. And, uh, wanted to get some numbers here to compare 'em and show you kind of how this lays out. And this gets interesting. So when we went to break, we were talking about the major upscale kit model and what those costs were. So if you're gonna pay for a major kittery model, upscale, like we talked about in the last segment, $154,000.

[00:29:38] Eric Goranson: Hundred 54,000 4 83 to be exact. Your resale value is $48,913 and you get a 31.7% return. Now, if we run out to major kits remodel on Seattle, it's even more $173,836 [00:30:00] with a $44,000 return, and that's a 25.7%. Cost recoup, and that gets pretty crazy pretty quick. And so now let's, let's talk about this for a second.

[00:30:16] Eric Goranson: Cause I think it, it, it, it bears mention, right? If you are gonna put your, if you're doing a kit remodel to put your house in the market, right, and you wanna get the most out of it, this is where maybe you might need to do a kittery bottle. Because if you're looking at your house saying, you know, in Seattle you can't get a house for.

[00:30:36] Eric Goranson: Under 800,000 bucks. Pretty easy just cuz of the crazy prices up there. But let's talk about that for a second. If you have a $800,000 house that has a horrible kitchen and everybody else has a brand new kitchen in it, that price of that kitchen model is coming off the price whether you like it or not.

[00:30:54] Eric Goranson: So you need to kind of give some value to this and think about it, because if [00:31:00] you want people to come by the house, that something finished, you're probably gonna have to invest in it. Now if you're thinking about just doing a, a nice, basic upscale one, that's one thing. Or if you're thinking about just cleaning up and doing some work on it, you need to be in competition with the people in your price point or what they call those comps.

[00:31:21] Eric Goranson: Otherwise, you're gonna have people bottom hitting you and trying to really. Really be able to get that where you know, you're competitive in the marketplace and especially with today's Titan market, high interest rates and everything else. So that does not come out in the numbers, but if you wanna get the house sold, sometimes you're gonna have to take some hits and, uh, maybe fixing up that kitchen is gonna be one of 'em to get people to purchase it.

[00:31:49] Eric Goranson: Now let's talk about some of the worst numbers in here. Now I think one of the worst numbers on a national average, and this one [00:32:00] was kind of shocking. This number every year goes down. If you look at a master suite edition, and let's talk about this for a second, and this is coming from, if you're just joining us to cost versus value report@costversusvalue.com.

[00:32:13] Eric Goranson: These guys are at Zda, do a great job with this and there's a lot of details in here that really help people. And, uh, make sure you head over to their website to get the area, the cost for your area. But when you look at a master suite edition, this is where it gets kind of crazy in the numbers because, I mean, this is a big project, so you're adding a 32 by 20 foot master bedroom suite over a crawlspace.

[00:32:40] Eric Goranson: So it's in addition, right? So you're adding on adding space to sleeping area with lounging, sitting area adjacent to large master bath. Include custom bookcases built in storage. With millwork details, high-end gas fireplace, stone hearth, custom mannel walk-in closet, dressing area, natural light mirrors, limb storage, maybe some french doors.

[00:32:59] Eric Goranson: [00:33:00] Bathroom has walk-in shower with dual shower systems. Stonewalls floor, custom frameless, glass free standing soaker tubs. So just a really beautiful space outside the bath. Have a five foot long hospitality center with a bar sink under counter fridge, custom cabinetry, stone countertop, microwave. So they've got all the in floor heating custom wall finishes, uh, soundproofing.

[00:33:19] Eric Goranson: Uh, general spotlighting, high-end lighting controls. That's what that is. No, that's, that's, that's living well, and I'll be the first to say it. That is a high-end project right there. Here's the number for that average price in the US $325,504. Resale value adds $73,875 at a 22.7% return. It's even worse in Seattle, that's a $407,000 project.

[00:33:52] Eric Goranson: $83,000 return at 20.4%. So you think about that, that is, that [00:34:00] addition is going to be your worst return, and that's pretty darn low. I mean, if you look at that, there are some other ones that are close, you know, upscale bathroom edition. You're looking at, uh, national average at 104,733 bucks, 27,830, $30 resale value at a 26.6% return.

[00:34:26] Eric Goranson: And in Seattle, that went up $30,000. So it's at 1 32, 887 at a 25.6% return. So when we start breaking these numbers down, we see a lot of different things. Um, let me, before I do that, let's actually jump in on the deck real quick. Decoration composite, uh, 23,430 is a national average, $9,000 return on investment, so it's a 39.8% decoration and wood because it's less money than that.

[00:34:59] Eric Goranson: That is at [00:35:00] 17,051, so it's a 50% return. That's not bad. And of course out on the west coast it's much more expensive than that. So those are kind of the things there that really make a difference. But when you look at this, your worst recoup on investment, unfortunately, is your bathroom projects. Your mid-range, cheapy mid-range bathroom model gives you the best return because the cost is so low.

[00:35:34] Eric Goranson: But your bathroom remodels, and right now your kit remodels are not doing well. If you look at a serious kit remodel, the biggest number is a return. National average is 41.8%, so you're losing 60% of your investment in that. And then your master suite edition is one of the worst at uh, on the West Coast at [00:36:00] 19.9%.

[00:36:01] Eric Goranson: So you're, you're tossing away 80% of the investment on that. Whereas in a, in a, just to kind of put it in a nutshell, your best return if you're in the Seattle area is fiber cement siding, where you get 151% return and really the best on the national average, if we look across the US, go into a heat pump at 103.5%.

[00:36:30] Eric Goranson: Return. Now, that number is probably going to be even higher right now than 103.5% because many cases, there are thousands of dollars with rebates out there that are currently in the market today to cover that. You know, on June 10th, there's a lot of great rebates out there for energy efficiency. That is huge, guys.

[00:36:54] Eric Goranson: So that could be even more, that could be 130, 140% if you've got. [00:37:00] Thousands of dollars coming off that price to do that. And it's gonna save you some money in the long run too. So really, curb appeal is big. Your HVAC conversion to electric is big and even bigger than what they state due to that. And then, you know, roofing is decent.

[00:37:20] Eric Goranson: Uh, when you look at that as well. Roofing is a, is a decent one. I mean, you have to have roofing either way, but if you look at roofing replacement, asphalt shingles, Uh, at a 61.1%, or a metal at a 48.9%. Those are all things that give you decent return on investment. Uh, and again, you know, the, the front doors that curb appeal stuff is really big.

[00:37:46] Eric Goranson: And so those are kind of my tips for this consumer. You know, if you're gonna go out as a consumer and pay for somebody to do this project, This is where that cost [00:38:00] versus value is gonna come in. Now, many times that job cost, if you're gonna do it yourself as a DIY project, my recommendation is, is to cut it down by half.

[00:38:09] Eric Goranson: So if you're, you've got $325,000 into a a Master suite edition, probably your max saving is gonna be 50% of that if you're doing it yourself. Because about half of that ends up being materials. So that's another thing to measure if you're gonna tackle this as a DIY project, but the resale is not gonna change.

[00:38:29] Eric Goranson: So this is where really on some of these projects, if you decide and have the skills or want to learn the skills to take on the project, you can really increase your value because all of a sudden, if you take something that has, you know, a 54% return, You're now taking that into a hundred percent return.

[00:38:49] Eric Goranson: If you're cutting that down by half and taking the labor out and not counting your sweat equity you're putting in your house. All right everybody. This is a great one on the cost versus value report. [00:39:00] Love to see your comments over on social media. Track me down over, just look for a round The house show.

[00:39:04] Eric Goranson: You can head to our website at around the house online.com, and if, uh, you're listened on the radio, you can catch the podcast over there. And if you want to be part of the, uh, round the House Insider, make sure and subscribe over on any podcast player or head over to around the house online.com. All right, hour number two coming up.

[00:39:22] Eric Goranson: Don't go away.