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NAR: Exterior replacement projects most valuable


 

WASHINGTON – Jan. 20, 2014 – A home’s curb appeal is crucial because it’s the first thing buyers notice about a home, according to Realtors® in the National Association of Realtors (NAR) 2014 Remodeling Cost vs. Value Report. Exterior projects were among the most valuable home improvement projects cited.

“With many factors to consider such as cost and time, deciding what remodeling projects to undertake can be a difficult decision for homeowners,” says NAR President Steve Brown. “Realtors know what home features are important to buyers in their area, but a home’s curb appeal is always critical since it’s the first impression for potential buyers.”

Brown says “Exterior replacement projects offer the greatest bang for the buck. Projects such as entry door, siding and window replacements can recoup homeowners more than 78 percent of costs upon resale.”

NAR’s consumer website HouseLogic.com highlights the results of the report in its “Best Bets for Remodeling Your Home in 2014” slideshow. The site also provides information and advice on home improvement projects, including a guide to kitchen remodeling with the best payback and dozens of exterior replacement projects.

Realtors judged a steel entry door replacement as the project expected to return the most money, with an estimated 96.6 percent of costs recouped upon resale. The steel entry door replacement is consistently the least expensive project in the annual Cost vs. Value Report, costing little more than $1,100 on average.

Eight of the top 10 most cost-effective projects nationally, in terms of value recouped, are exterior projects.

A wood deck addition came in second with an estimated 87.4 percent of costs recouped upon resale. Two different siding replacement projects also landed in the top 10, including fiber-cement siding, expected to return 87 percent of costs, and vinyl siding, expected to return 78.2 percent of costs.

Out of the top 10 projects, the fiber-cement siding replacement project improved the most since last year, with costs recouped increasing by more than 15 percent. Two garage door replacements were also in the top 10; a midrange garage door replacement is expected to return 83.7 percent while an upscale garage door replacement follows closely at 82.9 percent of costs recouped. Rounding out the top exterior remodeling projects were two window replacements; a wood window replacement is estimated to recoup 79.3 percent of costs and a vinyl window replacement is estimated to recoup 78.7 percent of costs.

According to the report, two interior remodeling projects in particular can recoup substantial value at resale.

An attic bedroom is ranked fourth and is expected to return 84.3 percent of costs; nationally, the average cost for the project is just above $49,000. The second interior remodeling project in the top 10 is the minor kitchen remodel. The project landed at number seven and is estimated to recoup 82.7 percent of costs. Nationally, the average cost for the project is just under $19,000. The improvement project likely to return the least is the home office remodel, estimated to recoup 48.9 percent.

For the report, Realtors provided insights into local markets and buyer home preferences within those markets.

For the second consecutive year, Cost vs. Value data shows that the value of remodeling is up for all 35 projects included in the survey. Additionally, for the first time in four years, improved resale value of residential housing had more of an influence in the cost-value ratio than construction costs. A modest 2.2 percent increase in average national construction costs was more than offset by an 11.5 percent improvement in average national resale value.

“Every neighborhood is different and the desirability and resale value of a particular remodeling project varies by region and metro area,” says Brown. “Before undertaking a remodeling project, homeowners should consult a Realtor as they are the best resource when deciding what projects will provide the most return upon resale.”

To read the full project descriptions and access national and regional project data, visit www.costvsvalue.com.

© 2014 Florida Realtors®

Related Topics: Buyer services