Your Best Investment When Renovating
When it comes renovating, the 2009 Remodeling Cost vs. Value Report* suggests that curb appeal wins the day in deciding what replacement costs to take on for your home.
That’s because 7 of the top 10 remodels that recover the highest value returns versus their costs are exterior replacement projects. Yet they are among the least expensive. Of 33 remodeling projects, 21 were Mid-level and 12 were Upscale.
The renovation projects that give the best return on investment (recouping the highest return for the least cost) are, in this order:
- Replacing an entry door
- Siding replacement of various types: fiber-cement, vinyl and foam-backed
- Adding a wood deck
Sunrooms and home offices continue to reflect the lowest returns on cost at 50.7% and 28.1% respectively.
On an overall average, all 21 mid-range projects recoup about 71.64% of costs, while all 12 Up-Scale projects recoup an overall average of 66.25% of costs.
However, costs recovered for specific replacements and their regional or market area averages, can prove far more meaningful.
A U.S. study, the Cost vs. Value Report, updated annually, can give us as Canadians a reliable glimpse at returns on home project costs. Keep in mind that the return on investment on any given project depends on a variety of other value factors:
*The 2009 Remodeling Cost vs. Value Report is produced by Hanley Wood, LLC, in cooperation with REALTOR® Magazine.