We are looking to build a couple ground up construction single family houses near Charlotte NC. The goal is to immediately sale the house once completed.
The house is 2,000 SqFt and comes with Vinyl. I can upgrade it to Hardie board for $15K.
The price point to sell the house is right at $350,000.
What are your thoughts on the ROI of adding the 15K to upgrade vinyl to Hardie?
It is in a rural area where there are not any comps of new construction sold without 5 years.
2,000 sf house at That price point and rural I would go with vinyl siding. If it were $500k or more I would go hardi but if this is more entry level / middle of road home go with vinyl.
2,000 sf house at That price point and rural I would go with vinyl siding. If it were $500k or more I would go hardi but if this is more entry level / middle of road home go with vinyl.
Hi Alex, I'd stick with vinyl here. At 350K in a rural market with no new construction comps in 5+ years, there's no evidence buyers or appraisers in your area are paying a premium for Hardie. A 15K upgrade only pencils out if it either shows up in the appraisal or clearly accelerates the sale and without comps that's not the case here. Save the hardie spend for a market where it's already the local standard or where you've got comps showing it moves price.
Yep...I agree. As wonderful as Hardie is, your scenario just does not justify it. If it were your own home, sure.
Or if you felt you could recoup the cost (?) then absolutely yes. Could you just add $15k to the price and justify it in the listing description? A lot of people would pay the extra. it ain't that much...I would for sure.
Actually maybe make a few bucks on it, raise the price by $30k.....? Just a thought.
I would strongly recommend checking the comps in this area. What are other developers doing? Are they selling houses for $350K with vinyl siding? If so, vinyl is probably the way to go.
If other developers are installing James Hardie siding, what price point are those homes selling at?
If you need any help with your projects, feel free to DM me. I’m a licensed General Contractor working in Charlotte, NC, and the surrounding areas.
Hey There @Alex Smith - This mainly depends on the condition of the current siding and what the comps are showing you at $350k?
Here in Chicago, if you are close to another building, they won't let you replace it with vinyl and will require Hardie board or a non-combustible material.
We are looking to build a couple ground up construction single family houses near Charlotte NC. The goal is to immediately sale the house once completed.
The house is 2,000 SqFt and comes with Vinyl. I can upgrade it to Hardie board for $15K.
The price point to sell the house is right at $350,000.
What are your thoughts on the ROI of adding the 15K to upgrade vinyl to Hardie?
It is in a rural area where there are not any comps of new construction sold without 5 years.
Thanks
My thoughts- The local market will tell you what to do. Run the comparables to see what the difference is selling with Vinyl versus hardiboard. Also do not forget to include what the difference in days on market when comparing the 2 strategies.
I'll offer what I've experienced. I built a duplex with vinyl siding that appraised at 400k. 18 months later built the same duplex with hardi that appraised at 430k.
So 12k more in cost got me 30k more in appraised value.
I sold the first one and refinanced the second one so the appraised value was important on that one. I also had someone offer 420k to buy it off market. But I kept it so we'll see.