From Brittany on August 10th, 2011 in General Remodel
For the third year running, remodeling projects are on the rise. Whether due to a change in values or the inability to sell their houses, more and more homeowners are choosing to stay put and invest in projects that will improve their quality of life at home.
Buildfax, an organization that collects data based on the number of construction permits filed with governmental building departments, has reported substantial increases in home remodeling projects, particularly for the last 19 months. And according to a recent survey by Consumer Reports, 54% of homeowners currently have plans to remodel some portion of their home.
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Prior to the economic turmoil, homeowners could expect to not only recoup their investment on renovations, but profit on them at the point of sale. While this is no longer the case, the return on investment for most home remodeling projects remains high. Remodeling Magazine’s annual report on the cost, resale value and amount of investment returned shows that most renovations recoup at least 50% of the costs.
Top Cost-Saving Home Improvements
Replacing windows typically saves you 30% or more on heating and cooling costs. Installing new windows not only improves the envelope of insulation that surrounds a home, but it eliminates drafts. Even in a well-heated home, drafts can make people feel chilly.
Homeowners who replace windows will immediately feeling more comfortable. Full window replacement generally costs about $10,000, with about 70% of that cost returned when the home is sold. In addition, homeowners can save as much as $200 to $300 a year on heating and cooling costs.
When it comes to room renovations, kitchen and bath remodels remain the most popular choices. A kitchen remodeling project costs about $20,000 to $55,000. Homeowners can expect to recoup about 70% of those costs when they sell their homes.
Does Energy Efficiency Add Real Value?
In short, yes. Installations that include energy-efficient appliances provide homeowners with month-to-month savings—an immediate perk to incorporating green in your remodel.
How can you be sure the extra expense pays off? Appliances with an Energy Star label must meet guidelines established by the Environmental Protection Agency. These guidelines mandate that Energy Star products that cost more than conventional products must recoup costs through increased energy efficiency.
With an average cost of $15,000, bathroom renovations generally recoup up to 65% of the cost upon the sale of the home. In both kitchen and bathroom remodeling projects, improvements in air conditioning and heating systems, insulation and water heaters, as well as light bulbs and lighting fixtures, can spell monthly savings for you. Look for the Energy Star label on these products, too.
While renovations that add to the resale value of a home are valuable, projects that make homes more energy efficient can improve your quality of life. Invest in remodeling that will help slim your utility bills, make your home more comfortable and lessen the drain on natural resources.
Photo via Houzz