Almost all of us have done remodeling projects at sometime during the ownership of our homes. Whether we are updating outdated décor and appliances, adding living space through additions, remodeling is something that seems an inherent part of home ownership.
Most remodeling is based on personal taste and homeowners remodel because they have the need or desire. But many of us still wonder will we get the payback from remodeling when the house is sold. Remodeling magazine publishes an annual report ranking the return on investment for various remodeling projects.
Wonder what the payback is on a project you’re considering? Here is the average payback percentage, comparing the cost of the project versus the amount at resale.
The top ten home remodeling projects for 2008:
- Siding replacement fiber cement-86%
- Deck Addition, (wood) – 82%
- Vinyl siding replacement – 81%
- Minor kitchen remodel – 80%
- Home Windows replacement – 77%
- Major kitchen remodel – 76%
- Bathroom remodel – 75%
- Basement remodel – 73%
- Deck Addition, (composite) – 74%
- Two story addition – 71%
The lowest returns are for:
- Home Office remodel – 55%
- Back up power generator – 57%
- Sunroom addition – 57%
- Master suite addition – 61%
- Garage addition – 63%
Siding and window replacement projects garner the most consistent and largest returns. Since these projects add curb appeal, they will always have higher returns. Consumers are also much more knowledgeable about energy efficiency and will realize that the return on investment for windows is pretty favorable.
Kitchen and bath remodels also performed best among traditional remodeling projects and they continue to be among the top 10 every year. Potential home buyers do not want to be inconvenienced by remodeling the kitchen or bath when they move in, and if the remodeling is already complete, they feel they have gotten value for their money.
As for additions, any addition should be a necessary addition. Remedying a home’s shortcomings — a small dining room, too few bathrooms, lack of common space — is what’s important to buyers. Repairing a shortcoming adds value by improving livability. As the luxury of the addition increases, the return appears to diminish. Adding a master suite addition, rather than remodeling the current master bedroom, will see less return.
Every room addition needs a floor! Hardwood flooring is a very popular flooring choice. Our reclaimed wood flooring is not only beautiful, but also eco-friendly.