The 2010-2011 Remodeling Cost vs. Value Report is out and here is a synopsis of its findings.
Exterior replacement projects give you the biggest bang for your buck as they Improve a home’s curb appeal and can be among the least expensive projects.
The report, produced by Home magazine in cooperation with REALTOR® Magazine, obtained responses from some 8,000 Realtors and Appraisers on 35 home projects and the estimate of the value that could be recovered versus the cost for replacements, remodels and additions.
Overall the recouped value of all 35 projects averaged out to 60% of cost--about 3.8% below last year’s average.
The Appraisal Institute of Canada’s website has a page called “RENOVA”. Here they use a range of value for recovering the cost of a replacement, remodel or addition. Their overall average recovery also works out to about 60%.
Some Results of the Cost vs. Value Report
The two highest return and least expensive replacements are
- a steel entry door and
- a mid-range garage door
The two give you an average return of 93% of cost.
Additional exterior projects that provide the most return for money spent are window replacement, vinyl siding and a wood deck addition, average return: 72.2% of cost.
The three lowest return projects are:
- a midrange home office remodel,
- a backup power generator, and
- a sunroom additioon.
All three recoup an average return of 47.6% of cost.
Of course, recovery of costs are influenced by a number of additional factors, such as:
- Neighbourhood market conditions (Is it a seller’s market, buyer’s market or a balanced market?),
- How certain projects coordinate with the rest of the home,
- Overall condition, inside and out,
- Conformity of property to the neighbourhood,
- Price and terms.
Source: REALTOR® Mag, Dec. 16, 2010
Talk to a Century 21 REALTOR® for advice and guidance on any and all aspects that may influence your home’s value.