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Which remodeling projects pay for themselves?

Wondering which remodeling projects are most likely to pay for themselves in terms of resale value? The latest edition of Remodeling Magazine’s annual survey of builders and real estate agents is out, and it offers some answers, both nationally and for different regions. Of course, every house, every community, and every remodeling project is different, and the results will vary widely from home to home. But the national averages make for interesting reading.

Nationally, the project with the highest recoupment percentage is a fiber-cement siding replacement. This costs an average of $13,212 and increases resale value by $11,633, or about 88%. This is followed by adding a wooden deck (85.4%), installing vinyl siding (83.2%), a minor kitchen remodeling (83%), and a window replacement (about 80%, depending on the materials).

The lowest recoupment percentages on the list were for upgrading a home office (57%), adding a back-up power generator (58%), and adding a sunroom (59.1%). Perhaps surprisingly, bathroom additions and upgrades were not high on the list, coming in at under 70%. In general, the survey found that recoupment percentages have fallen across the board since 2005.

However, the survey concludes: “Remodeling is still a pretty good investment. Two-thirds of this year’s projects return between 65% and 80% at resale. That means homeowners are still paying just 20 cents to 35 cents on the dollar for more space, better space, different space.”

You can find more details at http://costvalue.remodelingmagazine.com/index.html

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