Remodeling Projects That Will Improve Your Home’s Bottom Line

Which remodeling projects give you the best bang for your buck? All projects are not created equal; some will add to your home’s resale value while, surprisingly, others may not.

Remodeling magazine recently released its annual Cost vs. Value Report, which compares construction costs for popular remodeling projects to the share of those costs recovered at resale.

Since 2005, the improvements that have yielded the greatest amount of cost recouped have been exterior projects, such as door and siding replacements and wood deck additions. This year, on a national level, exterior projects account for seven of the top 10 spots in terms of cost recouped. A steel entry replacement door that costs an average of $1,172, for example, added $1,470 to the sales price of a typical house, or 128.9 percent of cost recouped. A wood deck addition recouped 80.6 percent of costs on resale.

The reason exterior projects have such a good return on investment: Curb appeal. These projects improve a home’s curb appeal, helping it make a better impression on potential buyers. They also cost less than many other projects, so the return is better.

Other midrange projects that return a high percent of costs on resale include:

• Attic Bedroom - 83%
• Vinyl siding replacement (79.9%)
• Minor kitchen remodel (78.3%)
• Basement remodel (75.4%)
• Major kitchen remodel, Two-story addition( 72.1%)
• Home office remodel (48.1%).

Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington outperformed the rest of the nation in terms of remodeling costs recouped upon resale.

Before you embark on a remodeling project, consult with a reputable local remodeling firm about construction costs—and call our CENTURY 21 offices today to speak with an agent who can tell you about home prices in the area.