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The Remodeling 2010-11 Cost vs. Value Report lists the leading home improvement or remodeling projects, taking into consideration construction cost vs. the average rate of investment return in your region. These numbers will vary depending on your specific neighborhood and how closely the improvements you make match the report's project description.
According to the report, the top five home improvements to yield the highest potential rate of return in the Seattle area are: 1) entry door replacement 2) garage door replacement 3) wood deck addition 4) siding replacement 5) minor kitchen remodel.
Entry door replacement: Exterior replacement projects yield a much better return than remodeling projects, partly because they are some of the least expensive to make, and partly because they are non-discretionary improvements that instantly increase curb appeal. Replacing the front door of your home is a relatively easy and highly cost effective improvement, and may also reduce heating costs. According to the report, up to 112.1% of the cost can be recouped to replace an existing door with a midrange steel door and new lockset.
Garage door replacement: Replacing an older garage door with a midrange, 4-section, steel door on new galvanized steel tracks, is the second most cost effective improvement you can make with a potential 96.4% return. In comparison to a remodeling project, it is an inexpensive improvement that adds to a home's resale value by increasing curb appeal and enhancing a potential buyer's first impression. Not to mention the convenience of having a reliable garage door that opens and closes as it should. If you have ever experienced problems with the garage door not working properly on a dark, rainy evening, you will not underestimate the value of this improvement.
Wood deck addition: If you don't already have a deck or patio, adding a midrange, wood deck is a relatively easy improvement to make. If you plan to stay in the home long term you may want to consider spending a bit more and using low maintenance composite materials. According to the building standards in the Cost vs. Value report you could potentially recoup 86.5% of the cost to build a midrange wood deck and 79.1% for a midrange composite deck. That's not a bad return for all the enjoyment you and your family will gain from this outdoor living space.
Siding replacement: Not only does replacing siding add up to good value, it can significantly increase curb appeal by improving the look of your home. Replacing siding with upscale, fiber-cement siding remains a good choice with an average return of 85.6% on your investment. For projects costing $5,000 or more, this improvement has remained in first position nationally since it was added to the survey in 2005. Keep in mind the style of your home and those in your neighborhood should be carefully considered when selecting the type of siding materials you plan to use. For instance, replacing traditional wood siding with vinyl may actually detract from the home's value.
Minor kitchen remodel: This would be considered more of a facelift for an older kitchen that is functional but needs some cosmetic updates. It includes replacing cabinet and drawer fronts and hardware, countertops, sink and faucet, flooring, wall covering and painting the trim. It also includes replacing the wall oven and cooktop with new energy efficient models. Being careful to stay within a modest budget this type of remodel could yield an 84.1% return.
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