Be Smart When it Comes to Your Home Remodeling Project
Although the true value of any home renovation is measured in the satisfaction and pleasure you’ll get from the finished project, if you’re considering selling your home, you’ll need to look at the value of your remodeling project a little bit differently, namely in how much of the remodeling costs you’ll recoup when you sell.
In Remodeling magazine’s annual “Cost vs. Value” report, the costs of some of the most popular remodeling projects are compared with how much the particular renovation will improve a home’s resale value. The report is compiled from a survey of over 3,200 real estate professionals for 22 projects in 136 markets and has been published annually since 2002. The complete data from Remodeling’s “Cost vs. Value” Report can be downloaded for free at www.costvsvalue.com.
In the last few annual “Cost vs. Value” reports, a couple of noteworthy long-term trends have emerged. First, projects that relate to “curb-appeal” are providing the biggest re-sale return. In the 2019 report, here are the top ten projects by percentage of costs recouped:
1. Garage Door Replacement (97.5%)
2. Stone Veneer (94.9%)
3. Minor Kitchen Remodel (80.5%)
4. Wood Deck Addition (75.6%)
5. Siding Replacement (75.6%)
6. Steel Entry Door (74.9%)
7. Vinyl Windows (73.4%)
8. Fiberglass Grand Entrance (71.9%)
9. Wood Windows (70.8%)
10. Composite Deck Addition (69.1%)
Except for a minor kitchen remodel, all of the top ten projects are exterior replacements and projects. Although the figures in the “Cost vs. Value” report are based simply on a survey of real estate professionals and are not hard data, we can certainly infer from recoup percentages that curb appeal and first impressions are very important in the home-selling process.
The second noteworthy trend is that although the recoup percentages have generally increased, so have overall remodeling costs. Between 2013 and 2019, the overall cost-to-value ratio has risen from 65.3 percent to 66.1 percent—but remodeling costs (for a combination of mid-range and upscale projects) have risen by 19.8 percent in the same timeframe. This may be important information for those homeowners who haven’t undertaken any large-scale renovation projects in the past several years.
As always, you’ll need to discuss your renovation options with your real estate agent before going forward with any remodeling project. They can help you work through all of the variables that are in play when it comes to which project is best for you and your home.
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