Siding and window replacements and wood decks had among the highest return of project costs upon resale, according to a report prepared by research company Hanley Wood LLC in cooperation with the National Association of Realtors’ Realtor Magazine.
The 2008 Remodeling Cost vs. Value Report found that the average upscale fiber-cement siding replacement project cost about $13,177 and recouped about $11,424 of that cost — or 86.7 percent — upon resale.
Wood deck additions, which cost an average of $10,601 per project, recovered an average $8,676, or 81.8 percent of the cost upon resale, the report found.
Midrange vinyl siding replacement projects returned about 80.7 percent of project cost, followed by upscale foam-backed vinyl siding replacement at 80.4 percent, minor kitchen remodels at 79.5 percent and upscale vinyl-sided window replacements at 79.2 percent of project costs. Wood and vinyl window replacements and major kitchen remodels followed on the list of projects
NAR noted that it was the second year in a row that exterior projects recouped the highest percentage of project costs.
The report compares construction costs with resale values for 30 midrange and upscale remodeling projects — including additions, remodels and replacements — in 79 markets across the country, NAR reported.
The least profitable remodeling projects in terms of recouped costs include home-office remodels, sunroom additions and backup power generators, according to the report, which return from 54.4 percent to 57.1 percent of project costs, on average, according to the report.
In some cities, homeowners can recover all of their costs on projects, the report found — some projects in Charlotte, N.C., as an example, can net more than they cost at resale, and Seattle, Jackson (Miss.) and Billings (Mont.) also topped the list of cities with a high rate of return.
The Pacific region (Alaska, California, Hawaii, Oregon, Washington); the West South Central region (Arkansas, Louisiana, Oklahoma, Texas); the East South Central region (Alabama, Kentucky, Mississippi, Tennessee); and the South Atlantic region (Washington, D.C., Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia) generally had higher recouped costs for projects than other regions in the U.S.
What’s your opinion? Leave your comments below or send a letter to the editor.