Admittedly I’m not a big fan of agents doing BPO’s. Simply put, it’s not what you’re trained to do. Sure you can put the comps together, but what about those pesky questions that ask what repairs should be made and what the potential yield financially, for making the repair?
Since I can’t convince most of you to stop doing BPO’s, I thought I’d give you this source from the Institute of Real Estate Appraisers.
If you’re going to give advice on repairs and upgrades, remember to always give a source for your opinion.
Remodel or Sell Options
| Project | Estimated Cost | % Recoverable |
| Add a Full Bath | ||
| to a 1 and 1/2 bath home | $5,000 – $10,000 | 80% |
| to a 2 bath home | $5,000 – $10,000 | 50% |
| Add a Half Bath | ||
| to a 1 and 1/2 bath home | $2,000 – $3,000 | 60% |
|
Add a Bedroom |
||
| within existing space | $6,000 – $8,000
$10,000 – $15,000 |
|
| add-on space | ||
| to a 3 bedroom house | 75% – 80% | |
| to a 4 bedroom house | 65% | |
|
Add a Garage |
$3,500 – $6,500 | Up to 50% |
| Add a Fireplace | $1,500 – $3,000 | Up to 75% |
| Enclose a porch | $5,000 – $6,000 | 50 to 60% |
| Install Central Air | $2,500 – $4,500 | Up to 75% |
| Install Window Units | $500 – $1,000 | 1 to 50% |
| Install New Heating Plant | $1,200 – $2,000 | 0 to 100% |
| Repaint Frame House | $1,000 – $2,000 | 30 to 80% |
| Install New Exterior Siding | $3,000 – $8,000 | Up to 75% |
| Landscaping | $500 – $2,000 | 40 to 60% |
| Add a pool | $10,000+ | 0 to 40% |
| Add a patio | $2,000 – $4,000 | 35 to 60% |
Source information from the Institute of Real Estate Appraisers
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Appreciate the project/item cost break down, and more importantly, you sourcing it.
The question of what features are worth is important whether we’re handling a BPO, or doing a CMA.
Jim Rake’s last blog post..Can You Say Convenience?
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