Add Value to Your Home by Investing In One of These Projects
Choosing to remodel a home can have many benefits such as more space, visual appeal, and energy efficiency. A benefit homeowners may not immediately consider is the return on the remodel. Remodeling can add value to the home thus making the potential selling process easier.
A Cost vs. Value Report is produced every year comparing the average costs of specific remodeling projects and their retained values in the U.S. market. The Cost vs. Value Report looks at three variables: job cost, resale value, and cost recouped. Job costs were generated using remodeling software that adjusts the baseline cost for the market. Costs include labor, material, and expenses. The estimated costs do not account for personalized or custom projects. The resale values were averaged from estimates by real estate experts via online survey.
The top five remodeling projects with the highest return on investment are:
1. Manufactured Stone Veneer
In general, manufactured stone veneer projects involve removing existing siding and replacing it with adhered stone veneer. Faux stone weighs a lot less than real stone which cuts costs and makes remodeling easier. According to the Remodeling 2020 Cost vs. Value Report (www.costvsvalue.com), the national averages of manufactured stone veneer projects are as follows:
- Job Cost: 9,357
- Resale Value: 8,943
- Cost Recouped: 95.6%
Stone veneer can help you home stand out against others in the neighborhood. Manufactured stone veneer projects average a 95.6% return on investment. This high return makes stone veneer a great choice for visual addition. Improving the curb appeal of your home can greatly increase its value.
2. Minor Kitchen Remodel – Midrange
A minor kitchen remodel is described as an update to a functional, but dated kitchen. This project consists of leaving cabinets in place, but replacing fronts with new wood panels, drawers, and hardware. Countertops are updated. Appliances are also replaced with new energy efficient models. According to the Remodeling 2020 Cost vs. Value Report (www.costvsvalue.com), the national averages of minor kitchen remodels are as follows:
- Job Cost: 23,452
- Resale Value: 18,206
- Cost Recouped: 77.6%
Minor kitchen remodels yield a 77.6% return on investment as complied in the Remodeling 2020 Cost vs. Value Report (www.costvsvalue.com). This means that a minor kitchen remodel is worth an average of 77.6% of what the owner spent.
3. Siding Replacement
Siding replacement projects involve removing existing siding and replacing it with new siding, including factory trim. Homeowners may wish to replace their siding if it is worn, damaged, and/or loose. New siding doesn’t only offer a visual benefit, but a structural one as well. Proper siding acts as a barrier between your home and harsh conditions outside. Insulated siding can increase energy efficiency by keeping your home warm and dry. According to the Remodeling 2020 Cost vs. Value Report (www.costvsvalue.com), the national averages of siding replacements are as follows:
- Job Cost: 14,459
- Resale Value: 10,731
- Cost Recouped: 74.7%
Brand new siding can be a selling point for potential buyers. The average return on investment for siding replacements is 74.7%.
4. Window Replacement – Vinyl
Window replacements consist of replacing windows with insulated vinyl windows and new exterior finish. Because they eliminate any air leaks or condensation older windows might have, new windows increase energy efficiency. According to the Remodeling 2020 Cost vs. Value Report (www.costvsvalue.com), the national averages of vinyl window replacements are as follows:
- Job Cost: 17,641
- Resale Value: 12,761
- Cost Recouped: 72.3%
Replacing old, leaky windows is important when trying to maintain resale value. The average return on investment for window replacements is 72.3%. Resale value might be lower if original windows in older, historic homes are replaced.
5. Deck Addition – Wood
A deck addition project involves installing treated joists supported by posts, treated deck boards in a linear pattern, stairs, and a complete railing system. The project can include a built-in bench and planter made from the same wood. According to the Remodeling 2020 Cost vs. Value Report (www.costvsvalue.com), the national averages of wood deck additions are as follows:
- Job Cost: 14,360
- Resale Value: 10,355
- Cost Recouped: 72.1%
Adding a deck can positively affect the resale value of your home, especially if it’s the only home in the neighborhood without one. Deck additions yield a 72.1% return on investment.
You’ll notice that a majority of these projects are exterior updates. This goes to show how much curb appeal can affect the value of your home. The outside of your home is what potential buyers see first and first impressions are important. The outsider on the list is minor kitchen remodel projects. Kitchens are one of the most popular and heavily used rooms in every home. For this reason, it is significant for homeowners to love and want to spend time in their kitchens.
© 2020 Hanley Wood, LLC. Complete data from the Remodeling 2019 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.