(Family Features) Whether it’s time to sell the house, or it’s just time to make some improvements, it’s important to know which projects will be the best investments. You may really want to put a hot tub in the bathroom, or create an outdoor room, but will you recoup any of those costs when you sell the house? Where’s the smartest place to invest your hard-earned money?
For the past 20 years, the National Association of Realtors and Remodeling magazine have produced the Cost vs. Value Report, a detailed analysis of key 30 different home improvement projects. The report shows how much the projects cost and what they typically recoup in value when a home is sold. The figures are adjusted by region as well as shown as a national average.
The 2008-2009 Cost vs Value Report indicates that while the average home price has fallen by a national average of seven percent, the value of homeowners’ remodeling investments has declined less than four percent. As the housing market has slowed, there are fewer upscale projects being done. Instead, the focus is on curb appeal projects.
In comparing the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.
Here are the top 10 projects and how much they typically pay back.
- Upscale fiber cement siding 86.7 %
- Midrange wood deck 81.8 %
- Midrange vinyl siding 80.7 %
- Upscale foam-backed vinyl 80.4 %
- Midrange minor kitchen remodel 79.5 %
- Upscale vinyl window replacement 79.2 %
- Midrange wood window replacement 77.7 %
- Midrange vinyl window replacement 77.2 %
- Upscale wood window replacement 76.5 %
- Midrange major kitchen remodel 76.0 %
The Cost vs. Value report assumes paying the full price for labor. So if you can do any part of a project, you could save costs and, therefore, get more of your money back.
Just how much is possible to recoup depends on several factors, such as the value of the homes in your neighborhood, the nature of the project, when you try to sell the home, as well as the condition of the overall housing market.
Before investing in one of these curb appeal projects, however, make sure that the basic structural and mechanical systems of your home are in good shape first. If you replace the windows but have a leaky basement, you’ll have a problem selling the house and getting any of your money back.
Courtesy of Family Features