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. Replacing an entry door topped the list, recouping the highest return for the least cost. Siding replacement of various types--fiber-cement, vinyl and foam-backed--recouped the 2nd highest return on cost. Adding a wood deck placed 3rd.
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:
- A home’s overall condition,
- The value of similar neighbourhood homes,
- Whether the local market is rising, falling or stable
Return on investment influences a homeowner’s decision to remodel. Obtaining actual construction quotes from a reputable contractor and talk to an experienced REALTOR® about comparable home prices and local market conditions.
Visit www.costvsvalue.com for your look at the various replacement projects and their average return on national, regional and market levels. The 2009 Remodeling Cost vs. Value Report is produced by Hanley Wood, LLC, in cooperation with REALTOR® Magazine.