Projects that show the highest return on investment (ROI) in the Remodeling 2014 Cost vs. Value Report include entry and garage door replacement, window replacement, deck additions, and kitchen remodels.
Here are the top 10 cost-recouping projects by category, according to the Remodeling 2014 Cost vs. Value Report (
www.costvsvalue.com).
Midrange Projects - Cost Recouped
1. Entry Door Replacement (steel): 96.6%
2. Deck Addition (wood): 87.4%
3. Attic Bedroom: 84.3%
4. Garage Door Replacement: 83.7%
5. Minor Kitchen Remodel: 82.7%
6. Window Replacement (wood): 79.3%
7. Window Replacement (vinyl): 78.7%
8. Siding Replacement (vinyl): 78.2%
9. Basement Remodel: 77.6%
10. Deck Addition (composite): 74.3%
Upscale Projects - Cost Recouped 1. Siding Replacement (fiber-cement): 87.0%
2. Garage Door Replacement: 82.9%
3. Siding Replacement (foam-backed vinyl): 78.1%
4. Window Replacement (vinyl): 76.6%
5. Window Replacement (wood): 74.0%
6. Grand Entrance (fiberglass): 70.7%
7. Deck Addition (composite): 65.1%
8. Bathroom Remodel: 63.6%
9. Major Kitchen Remodel: 63.6%
10. Roofing Replacement: 63.0%
Putting It In Perspective
Resale value is ultimately determined by buyers, seeing as they are the ones who decide how much they are willing to pay for a particular home. This means that
when planning home improvements in terms of ROI, it's important to keep in mind how things look from a home buyer's standpoint.What was the "Before" scenario?
How much functionality will the improvement add to your home?
For example, adding a bathroom in a home that started with just one bath often boosts resale value more than in a home that already has two or more baths. This is because it results in a huge upgrade in terms of convenience.
Turning a half-bath into a three-quarter or full bath can increase value significantly for the same reason, even though the shower or tub/shower combo only results in a .25 or .50 increase in bathroom count.
(In case you're wondering, the standard way to count bathrooms is to allot .25 for each fixture: sink, toilet, shower, and tub.)
How much bother and expense is involved?
From a buyer's standpoint,
a lower return-on-investment project may do more to remove a mental barrier to purchasing if it saves a lot of cost and hassle.
For example, deck additions beat out kitchen remodels in both categories, but it may be easier for a first-time or work-from-home buyer to plan on someday adding their own deck rather than face the prospect of spending twice as much on a life-disrupting kitchen remodel.
Will the project bump the home into a popular search category?
Your home could show up better in online listing searches if adding a bedroom, bathroom, or square footage means that it matches more commonly used search criteria.
What is the best choice for the home's target market?
Home buyers expect certain materials in various price points and property style categories, so it's important for design choices to hit the mark. A project that shows a higher ROI in the report may still not be the best option for your particular home.
Proper planning is crucial to making home projects pay off, so please don't hesitate to contact us for advice before you get started.
All information from the Cost vs. Value report is � 2014 Hanley Wood, LLC. Complete data from the Remodeling 2014 Cost vs. Value Report can be downloaded free at
Helpful Project Cost Calculators
If you're just getting a feel for the big picture before calling contractors for bids,
these easy-to-use online calculators can give you an idea of costs for various projects.
A very informative list with descriptions and cost ranges for everything from laminate to lava stone. (Produced by a business but not overly sales-oriented.)
No registration required, just input your zip code and choose a house and siding style to get a range of costs and features.
Pick a project and input your zip code to see a range of costs for your area. (No registration required, although the site does prompt you to optionally contact local contractors for bids.)
- U.S. home prices rose 13.7 percent year-to-year in November, according to a recent S&P/Case-Shiller report.
- The national average 30-year fixed mortgage rate is in the low to mid 4-percent range. For the first time in 20 years, jumbo loan rates have been lower than conforming loan rates.
- The Pending Home Sales Index dropped 8.7 percent year-to-year in December, according to data from the National Association of REALTORS� (NAR).
Note: Housing statistics based on closed sales typically reflect market conditions of two or three months ago.
To find out what's going on right now in our local market, please call us directly.
Are you planning to buy or sell a home, or do you know someone who is? Please call or email us. We're never too busy to help you and the people you care about with real estate.
(*What the lawyers make us say: The information in this newsletter is deemed reliable but not guaranteed. Please always consult a qualified expert before making decisions based on this content. Nothing in this article is meant to be taken as expert legal, financial, or medical advice.)