Exterior replacement projects continuously outperform other remodeling projects in terms of resale value. In fact, several inexpensive exterior replacement projects are expected to recoup close to 70 percent of costs, according to the 2011-12 Remodeling Cost vs. Value Report. The report compares construction costs with resale values for 35 midrange and upscale remodeling projects in 80 markets across the country.
"Exterior replacement projects, especially siding, window and door replacements are essential to regular home maintenance," said Gene Lentz, president of the Silicon Valley Association of REALTORS®. "The good news is that these projects do not require expensive materials and they improve curb appeal, which is important to those looking to sell their home."
REALTORS® expect upscale fiber-cement siding replacement to return the most money, with an estimated 78 percent of cost recouped upon resale. Two additional siding replacement projects were in the top 10, including foam-backed vinyl siding and upscale vinyl siding. Three door replacements were among the top exterior replacement projects. The least expensive project in the report is a steel entry door replacement, which is estimated to cost a little more than $1,200 on average, but expected to recoup 73 percent of cost upon resale. Midrange and upscale garage door replacements are expected to return more than 71 percent of costs.
There are some interior remodeling projects which REALTORS® considered worthy investments. A midrange attic bedroom remodel is expected to return 72.5 percent of cost and the least expensive way to add a bedroom and bathroom without expanding a home. A minor kitchen remodel and wood deck addition are also expected to recoup more than 70 percent of costs. A sunroom addition and a home office remodel are expected to yield the least return for the money, recouping less than 46 percent of costs.
"There are regional differences when it comes to the resale value of particular remodeling projects," said Lentz. "REALTORS®® can help homeowners decide what low-cost improvement investments will provide the most upon resale in their particular market. REALTORS® view homes all the time. They have a sense of projects that are worthwhile. Don't hesitate to ask your REALTOR® about what projects are of value in your neighborhood."
The 2011-12 Remodeling Cost vs. Value Report is published by Remodeling magazine publisher Hanley Wood, LLC and is in collaboration with the National Association of REALTORS®®.
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.