The National Association of Realtors released a report comparing remodeling costs to value in 2009. They found the most profitable projects are exterior replacement projects that cost less than $14,000. Specifically mentioned were various door & siding replacements, and deck additions – all returning more than 80 percent of project costs upon resale. In fact, a steel entry door replacement found to recoup 128.9% of costs!
This enforces the belief that first impressions really do matter. And the first impression of a home is the exterior.
“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.”
Exterior Remodeling Proves Best Bang for Your Buck, Realtors® Report
So if you are thinking about selling your home, make sure you take care of the curb appeal outside before you think about some of those interior projects. There were two interior projects that made the top 10 though – attic bedroom addition and minor kitchen remodel.
Specifically in Madison, WI, none of the remodeling projects returned 100% on investment. The steel entry door replacement was still #1 on the list, with 90.1% cost recouped. There are actually four interior projects on the top 10 for Madison, with major kitchen remodel & bathroom remodel being the additions. Exterior projects still dominate the list with four of the top five. The top 10 midgrade remodeling projects in Madison, WI for 2009 are as follows:
- Entry door replacement (steel) – 90.1%
- Siding replacement (vinyl) – 73.5%
- Attic bedroom – 73.4%
- Deck addition (wood) – 71.8%
- Window replacement (wood) – 71.6%
- Minor kitchen remodel – 69.4%
- Window replacement (vinyl) – 68.8%
- Major kitchen remodel – 62.1%
- Deck addition (composite) – 62%
- Bathroom remodel – 60.6%
A couple projects that typically have a low return on investment continued that trend in 2009. The least profitable remodeling projects were remodeling an office and adding a sunroom – both returning approximately 50% of project costs. In Madison, a sunroom addition saw 43.4% costs recouped and home office remodel saw 41.8%.
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