Home Improvement Projects That Pay Off
Slumping home values pulled the overall cost-to-value ratio down to
its lowest level this decade, extending the downward trend that began in
2006. In fact, the slide from 63.8 percent to 60.0 percent in costs
recouped is a slightly greater than last year’s 3.5-point drop. Projects
were more affordable to complete, with construction costs down 10.4
percent overall, but those lower costs were overmatched by a 15.8
percent drop in estimated resale values, the biggest decline in the last
eight years.
TOP 5: First Impressions Matter
Looking to convince dubious sellers that smart upgrades are worth it?
This year’s Cost vs. Value Report, by Remodeling magazine, provides
ample support. The annual survey uses input from REALTORS® in 80 cities
to rank home remodeling projects according to those that bring the
greatest cost recovered at resale. And looking at the five projects that
topped the list, it’s clear that first impressions really do matter
when sellers list their home.
Big-bang projects can make or break a sale from the moment potential
buyers exit their car. A midrange entry door replacement brings the
highest payback at a national average of 102.1 percent, followed by a
midrange garage door replacement, at 83.9 percent, and an upscale redo
of the siding at 80 percent of the cost. Step into the home, and a
midrange kitchen remodel recoups an average 72.8 percent. Gaze into the
backyard, where a wood deck addition also generates a 72.8 percent
return.
Also noteworthy in this slow-growing economy is that four of the top
five projects are "midrange" projects aimed at budget-conscious sellers.
If sellers still balk at the price tag, take note of our tips for
completing the projects on a tidy budget.
PROJECT 1: Entry Door Replacement (Steel)
Cost $1,218
Resale value $1,243
Cost recouped 102.1%
National averages
PROJECT 2: Garage Door Replacement
Cost $1,291
Resale value $1,083
Cost recouped 83.9% National averages
PROJECT 3: Siding Replacement (Fiber Cement)
Cost $13,382
Resale value $10,707
Cost recouped 80.0% National averages
PROJECT 4: Kitchen Remodel (Minor)
Cost $21,695
Resale value $15,790
Cost recouped 72.8% National averages
PROJECT 5: Deck Addition (Wood)
Cost $10,973
Resale value $7,986
Cost recouped 72.8%National averages
Learn more about these projects at www.Realtor.com