Guess which has most return on value?
According to the report, seven of the top 10 most cost-effective projects — nationally, in terms of value recouped — are exterior replacement projects. It deemed fiber-cement siding replacement as the project expected to return the most value, with an estimated 78 percent of costs recouped upon resale.- Vinyl siding projects were expected to return more than 69 percent of costs.
- Steel entry door replacement was the least expensive project in the report, costing little more than $1,200 on average, and was expected to recoup 73 percent of costs.
- Garage door replacements have seen prices fall more than 15 percent nationally and can be expected to return more than 71 percent of the cost.
- A “mid-range attic bedroom” is expected to return 72.5 percent of costs upon resale, in part because it is “the least expensive way to add a bedroom and bathroom within a home’s existing footprint.”
- A minor kitchen remodel (budgeted at roughly $20,000) is expected to recoup 72.1 percent of costs.
- A wood deck addition is expected to make back 70.1 percent of its price tag.
- Among the least cost-returning projects are a sun room addition and home office remodeling, both estimated to recoup less than 46 percent of what they cost.
- and the best return on your dollar is a new metal roof....returns a whopping 92.7%
Highest returns by region
The Pacific region (Alaska, Hawaii, California, Oregon and Washington) has the highest average cost-value ratio in the country, at 71.3 percent, “largely because the high cost of remodeling in the region is more than offset by high values at resale,” according to the report.Mid-Atlantic states averaged a return of 56.6 percent and East North Central states (Illinois, Indiana, Michigan, Ohio, and Wisconsin) recouped an average of 55.3 percent. West North Central states (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) saw the least amount of return, with 49.5 percent.
While fireplaces have traditionally been in demand, even they may be slipping in popularity.
In 2009, a consumer preference survey from the National Association of Home Builders ranked fireplaces as No. 1 on a list of what NAR called “Home Fads That Are Falling Out of Style.”
Also sliding from favor are carpeted floors and vinyl and ceramic flooring (hardwood has become more desirable) and “upscale kitchen finishes” as granite counter tops gradually give way to low-maintenance, more durable laminate counter tops.
DeSimone cautions homeowners against relying on add-ons and renovations to improve the value of their property when more fundamental concerns should be a focus.
First and foremost, a seller should make sure their home is well-maintained and that it looks well-maintained,” he said. “Before a seller starts making improvements like adding new energy-efficient windows — which are nice to have, but not something a buyer would truly care that much about — I recommend they make sure the structural integrity of the house is sound.
For example, if there is dry rot on the back deck or some issue with the roof or the foundation, these things need to be addressed, otherwise knowing that type of flaw exists will scare buyers off. It is not uncommon that a seller would have to spend $15,000 on dry rot just so that they can say the property is well-maintained.”
It’s hard to put a value on this type of improvement since the sellers aren’t really getting their money back,” he adds. “But ultimately the value we’re talking about with this type of improvement is getting a buyer to write an offer on your place sooner than later and not having your home on the market for months and having a series of price reductions, which end up killing the value.
This post originally appeared on The Street on Feb. 29, 2012 and was written by Joe Mont. It is republished here with permission from The Street.
