Tag Archives: cost vs value

ROI: 99 Projects and a Bath Ain’t One – REMIX

Home Improvement ProjectsLast year I wrote about what projects brought the best return on investment according to the annual Cost vs Value Report. This year the report is out again but showed a couple of differences.

MidRange Projects:

Top 5 Best ROI Projects in Boston

1- Minor Kitchen Remodel 88.5% ROI

2- Deck Addition (wood) 86% ROI

3- Enty Door Replacement (steel) 80.9% ROI

4- [tie] Attic Bedroom Remodel and Siding Replacement (vinyl) 78.1% ROI

5- Window Replacement (wood) 77.5% ROI

Top 5 ROI Projects National Average

1- Entry Door Replacement (steel) 85.6% ROI

2- Deck Addition (wood) 77.3% ROI

3- Garage Door Replacement 75.7% ROI

4-Minor Kitchen Remodel 75.4% ROI

5- Window Replacement (wood) 73.3% ROI

Upscale Projects:

Top 5 ROI Projects in Boston

1-Siding Replacement (fiber-cement) 86.4% ROI

2- Garage Door Replacement 77.8% ROI

3-Siding Replacement (foam-backed vinyl) 77.6% ROI

4-Window Replacement (vinyl) 76.4% ROI

5- Window Replacement (wood) 74.7% ROI

Top 5 ROI Projects National Average

1-Siding Replacement (fiber-cement) 79.3% ROI

2- Garage Door Replacement 75.2% ROI

3-Siding Replacement (foam-backed vinyl) 71.8% ROI

4-Window Replacement (vinyl) 71.2% ROI

5- Window Replacement (wood) 68.4% ROI

As you can see, the more you spend does not mean the more you get back. Before beginning any home improvement project it is important to consider the purpose for the project. Yielding a high return on investment is good to consider, but if you have no intention to sell anytime soon, there is no reason not to make a house your home. Once you have decided to pursue a project make sure to use the right contractor, no matter the project, the right contractor will save money in the long run.

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ROI: 99 Projects and a Bath Ain’t One

What Projects Bring the Best Return on Investment

When starting to do any renovations or improvements on a property the most important factor to consider is who or what the work is for. If this a property that can be called home for generations, then go personal, build it to fit your style, something that you want and will want for years. If the work is needed but in a property that you will out grow within several years, consider a practical approach. The more personal style shown in a project, most likely the less of a return on investment (or “ROI”) you will get at resale.

The cost vs value report 2011-2012 surveyed 35 remodeling projects over 80 cities that range from mid-range to upscale projects. According to this survey, replacement projects had the better return versus remodeling projects and mid-range projects recouped their costs more than upscale.

The top 5 projects that showed the best return at resale. Remember this is the national average and results may vary depending on location.

  1. Fiber-cement siding. This immediately improves curb appeal and 78% of the cost is recouped for a mid-range replacement.
  2. Entry door replacement. Again improves curb appeal and 72.8% of the cost is recouped for a mid-range replacement.
  3. Attic bedroom. This is a bigger project that adds an extra bedroom and bathroom and stays within the home’s original footprint. 72.5% of the cost is recouped. On average this project can cost $50,000 and has a value of $36,000 at resale.
  4. Minor kitchen remodel. This is a project that doesn’t have to cost very much if you think of it as a facelift. Replacing cabinets, hardware, countertops, and old appliances with energy efficient models can recoup 72.1% of the cost.
  5. Garage door replacement. 72.1% of the cost is recouped but this is a project that can vary in price depending on the home and the materials that have to be used. For a detached garage, an uninsulated door is fine. But if the garage is part of the house or rooms exist above the garage, spending more for an insulated door is necessary. Either way this project again immediately improves curb appeal.

The projects with the least return on investment are additions such as a sunroom or master suite. Remodeling a home office or bathrooms are also least likely to see a return on the dollars you put into the project, the reason being more people would want an extra bedroom rather than a home office and bathroom projects rank so low due to the expense. Taking a smaller bathroom and turning it into a spa also takes square footage away from other areas of the home and changes the original footprint of the home.

Renovations That Showcase Personality May Hurt ResaleResale is just one factor to consider when doing home improvement projects. If this is a home you have no intention of selling, making it what you want is more important, within reason. If your home is on top of your neighbors, you may want to tone down how much personality you show on the exterior of your home because it may make it stand out (and not in a good way).

Visit the Cost vs Value Report to see the full data and learn more about cost vs value. On the site, you can compare the data nationally, regionally, and by city.

To find your next project or your next home, contact the Realtors of Matthew and Alisa Group Real Estate.

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