REALTOR®: Inexpensive exterior remodeling can prove profitable for resale, according to REALTORS®
Wednesday, February 17, 2010
First impression is important for consumers who are in the market to buy a home. In fact, for the third year in a row, the 2009 Remodeling Cost vs. Value Report has found that homeowners get the best return on investment through exterior remodeling projects, according Jeff Bell, president of the Silicon Valley Association of REALTORS®.
"In order to compete in this market, it's important for a home to make a positive first impression," Bell said.
REALTORS® understand what catches their buyer clients' eyes, Bell remarked. "Consult with REALTORS® in your area if you're looking to increase home value. They see hundreds of homes each year, and they can provide valuable insight into what improvements will entice buyers," Bell said.
The 2009 Remodeling Cost vs. Value Report shows small-scale exterior projects are the most profitable at resale, according to Realtors who completed a recent survey. Nationally, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs. A steel entry door replacement recouped 128.9 percent of costs upon resale, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 mid-range and upscale remodeling projects in 80 markets across the country. The report was produced by Hanley Wood, LLC, with REALTORS® providing their insight into local markets and buyer home preferences within those markets.
The attic bedroom addition was a project with the biggest improvement from 2008, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that made the top 10 was a minor kitchen remodel, recouping 78.3 percent of costs. Other top 10 exterior projects include mid-range vinyl and upscale foam-backed vinyl siding replacements, which returned more than 79 percent of costs. Several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.
The least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.
"In this market, a well-maintained exterior can mean the difference between selling a home quickly for the list price and having a home that sits on the market for months and sells below the asking price," Bell said. "Now more than ever, it's very important to put your home's best facade forward."
Results of the report are in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, 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 email or call the SILVAR office at (408) 200-0100.
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