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REALTOR®: Exterior replacement projects that enhance curb appeal among most valuable home improvements

Wednesday, January 22, 2014

A home's curb appeal is the first thing buyers notice about a home. That's why REALTORS® rated exterior projects among the most valuable home improvement projects in the 2014 Remodeling Cost vs. Value Report. Exterior projects such as an entry door, siding and window replacements can recoup homeowners more than 78 percent of costs upon resale.

"A home's curb appeal is always critical since it's the first impression for potential buyers. That's why exterior replacement projects offer the greatest bang for the buck," according to National Association of REALTORS® (NAR) president Steve Brown.

The 2014 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 100 markets across the country. This report is produced annually by Remodeling magazine publisher Hanley Wood, LLC, in cooperation with NAR.

For the report, REALTORS® provided their insights into local markets and buyer home preferences within those markets. REALTORS® judged a steel entry door replacement as the project expected to return the most money, with an estimated 96.6 percent of costs recouped upon resale. The steel entry door replacement is consistently the least expensive project in the Cost vs. Value Report, costing little more than $1,100 on average.

Eight of the top 10 most cost-effective projects nationally, in terms of value recouped, are exterior projects. A wood deck addition came in second with an estimated 87.4 percent of costs recouped upon resale.

Two different siding replacement projects were in the top 10. Fiber-cement siding is expected to return 87 percent of costs, while vinyl siding is expected to return 78.2 percent of costs.

Two garage door replacements were on the top list, as well. A midrange garage door replacement is expected to return 83.7 percent. An upscale garage door replacement is expected to recoup 82.9 percent of costs.

Two window replacements were also rated top exterior remodeling projects. A wood window replacement is estimated to recoup 79.3 percent of costs and a vinyl window replacement is estimated to recoup 78.7 percent of costs.

The report mentions two interior remodeling projects that can recoup substantial value at resale. An attic bedroom is expected to recoup 84.3 percent of costs, with a national average cost of just above $49,000. The minor kitchen remodel is estimated to return 82.7 percent of costs, with a national average cost of just under $19,000. A home office remodel is likely to recoup the least, with an estimated return of 48.9 percent.

"It's always good to add value to your home, but the resale value and appeal of certain projects can differ, depending on your region or neighborhood. You also have to account for reasons why you are undertaking the project," says David Tonna, president of the Silicon Valley Association of REALTORS® (SILVAR).

Tonna adds, "It's always best to consult a REALTOR® who is familiar with your neighborhood and remodeling trends in the area, especially what appeals most to buyers when it comes to first impressions about a home. REALTORS® understand the market and would be familiar with buyer preferences when comes to home features."


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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