Remodeling projects require lots of time, emotional energy and of course, money. At the same time, remodeling your existing home may be far more cost effective than selling your home, buying a new home and moving. Consider the reasons why you might move and then look for creative ways to carve out a solution in your current home.
If you love your home but the kitchen size/layout isn't conducive to the parties you'd like to host, maybe it's time to remodel your kitchen? If your children are getting older or you're working at home and need an extra room or 2, consider putting an addition on your home to gain the needed space.
Here's a quick overview of the 10 top remodeling projects from Remodeling Online's 2006 Cost vs Value Report for New England. Use this information to guide your project from both a cost perspective and consider the long term view related to your home's resale value.
Top Remodeling Projects for High Return on Investment
When you're planning your remodeling project, you focus on what you want (or need) and of course, your budget. One of the most important things to include is contingency for things that come up once the project gets underway. You might uncover some rotted wood or mold when the sheet rock gets removed. You might stumble onto the perfect bathroom vanity but it's far more expensive than what you've allocated in your budget. By planning for contingency from the start, you will be able to handle these decisions with less stress.
You also want to compare how much you plan to spend versus similar projects in your area. If the average kitchen remodel costs $18,000 then you probably don't want to spend $30,000 on your kitchen remodel. Why? You'll be happier spending less and recouping most of your investment when you sell your home. For example, the list below shows an $18,000 kitchen remodel in the northeast US should recoup 86% or $15,500. Chances are if you spend $30,000 you wouldn't recoup much more than $15,500, as the rest of the house doesn't support that investment. The decision is yours and best wishes with your remodeling project.
- Vinyl Siding: should return 94.4% of your $8,717 investment.
- Upscale Foam Backed Vinyl Siding: should return 93.6% of $10,558 invested.
- Wood Replacement Windows: should return 91.6% of your $11,218 investment.
- Vinyl Replacement Windows: should return 88.4% of $13,295 investment
- Upscale Fiber Cement Siding: should return 87.9% of $13,234 investment
- Upscale Vinyl Windows: should return 86.6% of $10,201 investment
- Minor Kitchen Remodel: should return 85.8% of $18,081 investment
- Bathroom Remodel: should return 84.6% of $13,248 investment
- Upscale Wood Replacement Windows: should return 82.4% of $17,054 investment
- Two-Story Addition: should return 81.2% of $106,767 investment
Note that seven of the top ten projects involve siding or windows. As the cost of energy increases, home owners are focusing more on reducing their heating and cooling costs which happen with new, double pane windows and siding where extra insulation is added at the same time. The shift to these exterior remodeling projects started in 2003, and they now represent 36% of the 25 projects listed versus 20% in 2002.