Want to know what the return on your remodeled kitchen or new room addition will be?  Money magazine has assembled the 25 most common home improvements and the value they add with the “renovation wizard” calculator.

Remodel Return Calculator

Attic Bedroom Remodel 
Basement Remodel 
Bathroom Addition 
Bathroom Remodel 
Deck Addition 
Family Room Addition 
Home Office Remodel 
Major Kitchen Remodel 
Master Suite Addition 
Minor Kitchen Remodel 
Roofing Replacement 
Siding Replacement (vinyl) 
Sunroom Addition 
Two-Story Addition 
Window Replacement (wood) 
Window Replacement (vinyl) 
UPSCALE Bathroom Addition 
UPSCALE Bathroom Remodel 
UPSCALE Major Kitchen Remodel 
UPSCALE Master Suite Addition 
UPSCALE Roofing Replacement 
UPSCALE Siding Replacement (fiber cement) 
UPSCALE Siding Replacement (foam-backed vinyl) 
UPSCALE Window Replacement (wood) 
UPSCALE Window Replacement (vinyl)

Getting Started

Before working on your construction costs you should have the following items completed:

• Pre-qualification for a construction loan
  Not because Home Construction Capital gives you access to the nation’s best construction loans, but because without this you don’t know what you can afford.  All your work could be for naught if you can’t afford the home you are planning.
• Plans Selected
  For a detailed analysis you will need to have a general idea of the home you will build. There are endless amounts of plan sites on the net to choose from.  Most plans come with a detailed description of the items needed such as type and quantity of lumber, etc.

Discover Building’s Free Construction Cost Breakdown

Home Construction Cost Breakdown Spreadsheet

Cost To Build Web Sources

Estimated Repair and Remodeling Costs – Average Cost Per Job

Construction Costs by line item- In 2004 the National Association of Home Builders compiled a national average costs to build for a 2,800 sqft home.  The data is three years old, but provides a good rule of thumb for what to expect in terms of percentages by line item.

Quick Construction Cost Calculations

For those not ready for the in-depth analysis.

Free Cost To Build – 5 minute construction cost analysis based on 34 categories.

House Plans Cost To Build – Pick a plan and order a cost to build, costs generated by zip code. $29

Detailed Cost To Build Data

Marshall and Swift provides most data for appraisers completing the “Cost Approach” on construction appraisals.  They provide feature rich, high end, products for professional cost estimating. Very educational site.

Home Repair and Remodel 2007 Cost Guide – $76.00

Residential Cost Estimator Xpress – Software program $379

Most traditional construction loans require a 680 credit score or better for qualification.  Some niche lenders offer loans on scores less than 680. These loans typically charge higher interest rates and require substantial equity, or money down.  Making a tough situation even worse, loans with less than 680 credit scores loans require 15% of total costs into the transaction in form of cash to close or equity.

Even if a person has a 680 or better credit score they still can be denied a loan if their mortgage is reporting a 30 day late in the last year on either a first or second mortgage, HELOCs included.  Missed mortgage payments can be true deal killers.

If you haven’t reviewed your credit in over a year it’s highly advisable to purchase an online copy.  Review for inaccuracies, inquires, open trade lines, and public record information. For more information about credit, download this booklet “understanding your credit score” from myfico.com.  Wikipedia has detailed information about credit scores.

Credit ratings not only play a role in qualifying for a loan but will also effect insurance premiums and being extended credit by suppliers.

If you are considering a construction loan and have purchased your land already, you may benefit from the equity accumulated over time. Most lenders will use the sales price if the transaction took place in two years or less to calculate equity. If the lender uses the purchase price your equity is calculated only by the difference between the payoff of the land vs. the purchase price. If you purchased your land 2 years ago or more lenders will automatically default to the market value listed on the appraisal.
If your land is in an area where price appreciation has been on a tear, you can request a land appraisal of the property to be included in the “subject to” appraisal of your new construction. This will increase the cost of the appraisal because the appraiser must obtain at least 3 comparable pieces of land, in addition to the standard 3 comparable pieces of land needed to establish the after completion value of your home.

It goes without saying that knowing your credit standing is important. Credit plays a major role in the construction process; obtaining loans, qualifying for a good rates on insurance and being extended credit by local suppliers are all are impacted by credit rating.  Since most construction lenders require a 620 credit score or better for qualification, it’s important to know your standing before applying for a loan. Some niche lenders will loan on scores less than 620. These loans typically charge higher interest rates and substantial equity or money down is required.

Even if a person has a 620 credit score they still can be denied a loan if their mortgage is reporting a 30 day late in the last year on either a first or second mortgage, HELOCs included.

If you have questions about your credit or haven’t applied for a loan lately it’s well advised to pull a credit report. If you would like to learn more about credit facts and fallacies visit www.MyFico.com

The Modern Builder endorses MyFico.com as the best online credit information source and an excellent resource for credit resolution.