According to Remodeling Magazine’s Cost vs. Value Report 2008, maintenance-related projects and moderately priced upgrades are still providing stable paybacks.
In Realtor magazine and the Southern Kentucky Real Estate News blog, G.M. Filisko says homeowners can expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects. At the height of the housing boom in 2005, the rate of return was 86.7 percent.
A drop of about 20% is significant, and yet a return of almost 70 cents on the dollar for remodeling expenditures is still a good return when you add in the benefit of enjoying the results of the remodel for months or years prior to selling your home. The remodeling work will also help you sell your home faster and more profitably.
According to Filisko’s article, Bernard Fallon, a broker at Fallon Associates Realty in Rochester, NY, says , “If sellers have done some improvements and dressed up their property, the improvements will help sell it. If sellers don’t want to improve their property, buyers will tick off the repairs and try to take them off the price.”
Top 10 Project Paybacks
Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.
- Upscale fiber cement siding (86.7%)
- Midrange wood deck (81.8%)
- Midrange vinyl siding (80.7%)
- Upscale foam-backed vinyl (80.4%)
- Midrange minor kitchen remodel (79.5%)
- Upscale vinyl window replacement (79.2%)
- Midrange wood window replacement (77.7%)
- Midrange vinyl window replacement (77.2%)
- Upscale wood window replacement (76.5%
- Midrange major kitchen remodel (76.0%)
The upshot of the information is that even though the market it still shaky, and is projected to be for a while, remodeling your home can still be one of your wisest choices. Since homes are often people’s most significant investment, adding value with targeted remodeling projects will build value into your overall home as well as enhance your experience living in it.