09 February 2010
Small-Scale Exterior Home Improvement Projects are Most Profitable at Resale
Some of the smartest home improvement investments may also be some of the least expensive, according to the 2009 Remodeling Cost vs. Value Report produced by Hanley Wood, LLC.
On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that were less than $14,000. Certain types of door and siding replacements, as well as wood deck additions, all returned more than 80 percent of project costs upon resale.
A steel entry door replacement recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs. (Fiber cement siding is a durable, natural looking material that can have the appearance of wood, stucco, or masonry and holds paint well. Vinyl siding is made from a PVC (polyvinyl chloride) plastic.)
“The Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” says Sheila Rice, executive vice president of Virginia Cook, Realtors. “Curb appeal truly adds value to the real estate transaction.”
Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.
The project with the biggest improvement from the 2008 report was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country.
Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report was produced by Hanley Wood, LLC in cooperation with the National Association of Realtors.
Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale.
The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.
The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).
“Remodeling projects are just one of many factors that contribute to a home’s overall resale value,” says Mrs. Rice, a real estate industry leader for over 30 years. “A Realtor is your first and best resource for guidance on what projects and investments will make a difference in your home.”
Other factors affecting a home’s value include location, condition of surrounding properties and the regional economic climate.
Some of the smartest home improvement investments may also be some of the least expensive, according to the 2009 Remodeling Cost vs. Value Report produced by Hanley Wood, LLC.
On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that were less than $14,000. Certain types of door and siding replacements, as well as wood deck additions, all returned more than 80 percent of project costs upon resale.
A steel entry door replacement recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs. (Fiber cement siding is a durable, natural looking material that can have the appearance of wood, stucco, or masonry and holds paint well. Vinyl siding is made from a PVC (polyvinyl chloride) plastic.)
“The Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” says Sheila Rice, executive vice president of Virginia Cook, Realtors. “Curb appeal truly adds value to the real estate transaction.”
The least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions
The project with the biggest improvement from the 2008 report was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country.
Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report was produced by Hanley Wood, LLC in cooperation with the National Association of Realtors.
Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale.
The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.
The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).
“Remodeling projects are just one of many factors that contribute to a home’s overall resale value,” says Mrs. Rice, a real estate industry leader for over 30 years. “A Realtor is your first and best resource for guidance on what projects and investments will make a difference in your home.”
Other factors affecting a home’s value include location, condition of surrounding properties and the regional economic climate.
Subscribe to this comment's feed