ThermaTru Doors

BETTER ENTRYWAYS BOOST HOME VALUES, STUDY FINDS
Consumers'Estimates of Home Values Jump as Much as $24,000

MAUMEE, OHIO – Therma-Tru's National Home Valuation Study™ offers proof that a more attractive front entrance can considerably increase the perceived market value of a home.

The study, commissioned by Therma-Tru Doors and conducted by independent research organization TNS, asked more than 2,400 consumers from across the United States to estimate home prices based on the homes'exterior appearance. The study found that an enhanced entryway can add as much as $24,000 to a home's perceived value. The added value was as much as five times the cost of the entry system.

Moderately priced homes benefited, too. The second installment of the Therma-Tru National Home Valuation Study™, conducted in 2002, found that moderately priced homes benefit from entryway updates just as much as their upscale brethren. The new study shows that an upgraded entryway can increase the perceived value of a home in the under $200,000 price range by $7,720, or 4.1 percent.

National Sample of Homebuyers
Independent market research firm TNS conducted the study using an online survey. TNS, a leader in web-based market research, recruited similar sample groups of homeowners. The participants were qualified by age and income to reflect typical homebuyers. They were between 30 and 50 years of age, had an annual family income of at least $75,000 and had either purchased or shopped for a home within the past five years.

Each group looked at images of homes and was asked to estimate how much each one would cost, based on its appearance. One group looked at images of homes with standard 6-panel doors. This group of images was referred to as the "unenhanced" sample. Another group looked at images of the same homes upgraded with Therma-Tru fiberglass entry systems, including decorative glass, sidelites and transoms. This group of images was referred to as the "enhanced" sample. Both groups also viewed "control" homes, which were used to adjust for possible sample differences.

Consistent Increase in Perceived Value of Homes
The enhanced entry systems added to the perceived value of the home:
  • In the first home (upgrade from 6-panel Smooth-Star® door with two sidelites to a complete Classic-Craft® door system), the perceived value increased from $427,540 to $441,190, a difference of $13,650 (3.2 percent).
  • In the second home (upgrade from a standard 6-panel door to a complete Classic-Craft door system), the perceived value increased from $284,730 to $303,630, a difference of $18,900 (6.6 percent).
  • In the third home (upgrade from a standard 6-panel door to a complete Classic-Craft door system), the perceived value increased from $403,470 to $428,310, a difference of $24,840 (6.2 percent).
In a follow-up study, homebuyers looked at an image of a moderately priced home with a painted 6-panel door and clear glass sidelites. A second group saw the same home with a stained Therma-Tru Fiber-Classic® system, including decorative glass doorlites and sidelites. With the 6-panel entryway, consumers estimated the home's value at $189,300. With the enhanced entry system, the estimate jumped to $197,020--an increase of $7,720 or 4.1 percent.

Benefits for Builders, Homeowners, Remodelers
These findings suggest important benefits for builders, homeowners and remodelers, suggesting that an enhanced entry system will positively influence the selling price of a home. In addition, it suggests that builders who install an upgraded entry system will gain an immediate competitive advantage over those who don't--especially for capturing shoppers'critical first impressions.

That perception could translate into a higher selling price, increased demand and improved sales cycles for builders. For homeowners and remodelers, the study suggests that a new entry door system will add value to an existing home, at a lower cost than many other remodeling projects.

For example, a survey of real estate agents in Remodeling magazine found that most improvements yield a return of less than 90 cents on the dollar in terms of the home's market value and cost much more than a new entry system. According to the research, the added perceived value of an enhanced entryway returns $4 to $5 in increased perceived value for each dollar invested.

Increase in Perceived Values for Homes with Enhanced Entry Systems

 

Unenhanced Value

Enhanced Value

Difference

Percent Difference

Test Home 1*

$427,540

$441,190

+$13,650

+3.2%

Test Home 2**

$284,730

$303,630

+$18,900

+6.6%

Test Home 3**

$403,470

$428,310

+$24,840

+6.2%

Test Home 4***

$189,300

$197,020

+ 7,720

+4.1%

*Upgrade from a Therma-Tru 6-panel Smooth-Star door system with two sidelites to a complete. Therma-Tru Classic-Craft door system including decorative glass, sidelites and a transom.
**Upgrade from a standard 6-panel door to a complete Therma-Tru Classic-Craft door system including decorative glass, sidelites and a transom.
***Upgrade from 6-panel door with clear sidelites to complete Therma-Tru Fiber-Classic system including decorative glass, sidelites and transom.

Return on Investment for Home Improvements (National Averages)

 

Cost

Resale Value

Cost Recouped

Minor kitchen remodel

$14,733

$13,038

88%

Bathroom remodel

$  9,455

$  8,048

85%

Major kitchen remodel

$38,769

$31,344

81%

Family room addition

$46,738

$37,217

80%

Deck

$  5,865

$  4,498

77%

New siding

$  6,286

$  4,604

73%

Source: Remodeling, November 2001

How The Study Was Conducted
The study was sponsored by Therma-Tru Doors and conducted online by independent research firm TNS. TNS maintains a database of consumers who have agreed to participate in web-based surveys. Out of this database, it invited thousands of homeowners from across the United States to participate in the survey. Respondents were qualified by age and income to reflect typical home buyers. They were between 30 and 50 years of age, had a family income of at least $75,000 and had purchased or shopped for a home within the past five years. The sample was split evenly between men and women. In all, 2,400 homeowners participated in the study. They were randomly assigned to one of two sample groups: "unenhanced" and "enhanced." Each group was shown a series of homes – two control homes and three test homes – and asked to estimate how much each one would cost. The control homes were the same for each group. The test homes were identical for both groups with one difference: The "unenhanced" group saw the homes with standard 6-panel doors. The "enhanced" group saw the same homes with a complete fiberglass door system, including decorative glass, sidelites and a transom.

About TNS
TNS is one of the world's leading providers of research-based marketing information and counsel. TNS has facilitated Fortune 500 clients'business decisions for more than 50 years by providing in-depth knowledge and understanding of consumers and brands through research. Their services include comprehensive counsel on market evaluation, product development, brand management, customer satisfaction, pricing, distribution and advertising effectiveness. TNS is a worldwide leader in Internet-based research and maintains one of the world's largest interactive panel communities. They are one of The Interpublic Group of Companies (NYSE: IPG), and have majority-owned operations in 40 countries. For more background, visit TNS on the web (www.tns-global.com).


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