Exterior remodeling projects return the most money as a percentage of cost, so says the National Association of Realtors as detailed in the 2008 Remodeling Cost vs. Value Report.
The report specified that, “wood deck additions and all types of siding replacements–upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl–returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent.”
The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year according to the NAR.
The Cost vs. Value report also found that window replacements as well as kitchen remodels also returned a relatively high percentage of remodeling costs, and it did not matter what type of window replacement. Midrange wood to upscale and midscale vinyl–returned more than 76 percent of costs. Major kitchen remodels returned 76 percent of cost, while a minor kitchen remodel returned 79.5 percent of cost.
What was down return versus cost? Bathrooms while still a decent investment, do not return as high a percentage as in previous years. Attic-to-bedroom conversions and basement remodels were on the low end of projects with highest costs recouped.
The worst remodel projects in terms of dollars invested versus percentage recouped in added value remained home offices, and sunrooms which barely returned higher than 50% of project cost.
“A home’s overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project,” says National Association of Realtors® President Charles McMillan.
