For home owners, tackling a home improvement project can often translate into increased value. While not all remodeling projects are created equal, both with regard to time and money spent, some projects offer a bigger return on investment than others. The National Association of Realtors (NAR) recently unveiled the results from their 2013 Remodeling Cost vs. Value Report.
NAR president Gary Thomas adds, “Projects such as siding, window and door replacements can recoup more than 70 percent of their cost at resale. Realtors know what home features are important to buyers in your area and can provide helpful insights when considering remodeling projects.”
It’s common knowledge that kitchen and bathroom remodels offer some of the biggest ROI, but the report actually found that replacing a front door with a steel one actually equates to the biggest return on your investment. Home owners who make this slight improvement realize approximately 85.6% of their costs from this project upon resale.
Other projects that offer significant returns are a wooden deck addition (77.3% recoup rate), replacing a garage door (75.7% recoup rate), minor kitchen remodels (75.4% recoup rate), and wood replacement windows (73.3% recoup rate). There are a variety of other projects that are expected to yield at least a 70% recoup rate, including adding an attic bedroom, replacing vinyl siding, vinyl window replacement, and basement remodels.
On the flip side, home office remodels and sunroom additions net the smallest return on investment for home owners. Thomas went on to say, “Each neighborhood is different, and the desirability and resale value of a particular remodeling project varies depending on where you live. When making a home remodeling decision, resale value is just one factor that homeowners should take into consideration.”