To Remodel or Not To Remodel-That is the Question
News, Real Estate
December 4th, 2008
If you’re considering remodelling you’re probably wondering what impact the project will have on the value of your home. Not all projects are equal in this regard.
A recent article (RISMEDIA) presents the results of a 2008 study of cost versus value for several types of remodelling projects. Here’s a synopsis of the information:
The general category of projects that result in the greatest value increase (as measured by re-sale value), are exterior projects. Think curb appeal. Interior projects return lower values although some still rank fairly high. The values are the percentage of construction cost that was realized in the resale of the home.
- Upscale fiber cement siding (Hardy siding is an example) - 86.7%
- Wood deck additions - in our area I would say that the composite materials are more appropriate - 81.8%
- Mid-range vinyl siding - 80.7%
- Upscale foam backed vinyl siding - 80.4%
- Minor mid-range (price) kitchen remodel - 79.5%
- Major mid-range kitchen remodel - 76%
- Windows - 76%
- Mid-range bathroom remodel - 74.4%
- Mid-range attic to bedroom remodel - 73.6%
- Mid-range basement remodel - 72.7%
- Home office remodel - 54.4%
- Sunroom addition - 56.6%
- Back-up power generator addition - 57.1%
The study was done on a national level and results were tabulated by regions. California was among several regions that yielded a higher percentage of the construction cost to resale value. Most of the higher yielding regions are in the West and Southeast, while the lower yielding regions are in the Norther Midwest and the Northeast.
