Home remodeling projects are heating up in 2013. There's lots of good news for homeowners and general contractors in this year's home Remodeling Cost vs Value 2013 (www.costvsvalue.com). In contrast to last year's survey, all 35 projects showed improved return on investment, where last year only 2 of the projects (attic bedrooms and replacement garage doors) had higher ROIs than the previous year.
When we only look at the top 10 (of 35) home remodeling and renovation projects, 7 have to do with improving a home's exterior curb appeal … which is consistent with every report I've studied over the last 8 years. That means it must be time to try and understand why these projects consistently lead the way in terms of resale value.
Which Home Renovations Provide the Best ROI
Remember that the “Return on Investment or ROI” represents the dollar value that future buyers will give you for home improvements so the question is why do the exterior home renovations continue to come out on top year after year?
The answer from realtors and appraisers invariably is curb appeal, as that first impression is made as buyers approach your house. The front door, garage door and overall image need to look welcoming and fit the neighborhood. To sell your home it's common to paint your home's exterior if it needs it (or wash vinyl siding) and giving your front door a fresh coat of paint and/or new hardware and light fixtures can make your home come alive. Landscaping can also enhance your home's curb appeal … so why replace your door, windows or siding?
You want to replace exterior doors, windows and siding as they reach their end of life (see Budgeting for Exterior Home Renovations), to reduce maintenance costs or save energy … and yes, sometimes you'll upgrade a front door to give your home more personality. Why steel entry doors are included in this survey remains a mystery as their warranty is only 10 years compared to 20 years for fiberglass doors so if you want to learn more, read my earlier article Exterior Doors: Fact, Fiction …
Entry Doors (Steel)
Minor Kitchen Remodel
Deck Addition (Wood)
|Average Cost for TOP 12 Projects with Higher than 70% Return on Investment|
Home Remodeling Projects That Add Living Space
When the housing bubble burst, many homeowners decided to stay in their existing homes for financial, professional and personal reasons. That's not to say the reasons why many people have moved in the past (Who's Moving & Going Where?) have gone away. This year we're seeing more interest in all types of home additions.
Home additions are more costly than remodeling a kitchen or existing bathroom, because you're either finishing existing space in your attic or basement, or expanding your home's footprint which involves structural work from the roof down to the foundation. For those considering a home addition, the Cost vs Value report is a great tool to learn the resale value of different home additions, along with a realistic budget for your city.
With any home remodeling or renovation project, make sure your updated home has a consistent style and fits into your neighborhood, to make it easier to sell.
Home Additions Come In Many Shapes and Sizes
Entry Doors (Fiberglass)
Major Kitchen Remodel
Deck Addition (Composite)
|Average Cost for MIDDLE 12 Projects with More than 60% Return on Investment|
$34,856 and you know
Home additions are much more expensive than other remodeling projects because you have to excavate (unless you're building over a crawl space or on top of a slab), pour a foundation, frame and roof the space before you start finishing it. That's why you want to be really sure you need (want) the added space, and that buyers will value the addition when it comes time to sell your house.
Upscale Kitchen Remodel
Upscale Deck Addition (Composite)
|Average Cost for BOTTOM 10 Projects with Less than 60% Return on Investment|
$56,367 … but not sure I'd
Note: Included in the report is a backup power generator. We didn't cover it here as it didn't fit any of our categories.