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Exterior replacement projects are most cost-effective improvement, according to REALTORS®

Wednesday, December 22, 2010

REALTORS® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time.

"This year's Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home," said National Association of REALTORS® President Ron Phipps.

Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement returned the most money, with an estimated 102.1 percent of cost recouped upon resale - the only project in this year's report that is expected to return more than the cost. The midrange garage door replacement is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average.

The 2010-11Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects, including additions, remodels and replacements in 80 markets across the country. The report is produced by Remodeling magazine publisher Hanley Wood, LLC.

The report states replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70 percent of costs. REALTORS® stated upscale fiber-cement siding replacement was the most cost effective among siding projects, recouping 80 percent of costs; upscale vinyl window replacements were expected to recoup the most, 72.6 percent upon resale; and a wood deck addition, tied with a minor kitchen remodel, was expected to recoup an estimated 72.8 percent of costs.

Top interior projects for resale value included an attic bedroom and a basement remodel. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2 percent nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70 percent. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8 percent; a backup power generator, recouping 48.5 percent; and a sunroom addition, recouping 48.6 percent of costs.

"Resale value varies by region and even by neighborhood. It would be a good idea to always check with your REALTOR® before undertaking a big project," said Jeff Bell, president of the Silicon Valley Association of REALTORS®.  "REALTORS® have been in many homes and will be able to provide you with insight on projects in your neighborhood that will bring the best value and recoup the most when you are ready to sell your home."

Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF, visit www.costvsvalue.com.


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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