So, you're thinking about a home remodel project. If you're like most people, you are planning a remodel because your house is old and needs a face-lift, because you want to improve the function of existing rooms, or because you simply need more living space. One question people often ask is whether they will be able to recoup the cost of their remodel when they sell their house.
The answer varies from project to project. The following project types and their resale value relative to cost were identified by Remodeling Magazine.
1. Entry Door Replacement – 131%
Want to get the most bang for your buck? Replace your entry door with a new painted steel door with half-glass panel. Granted, this is such a small project that you aren't really going to be adding much value to your house. But it's great for curb appeal!
2. Garage Door Replacement – 126%
While you're at it, replace that old garage door with a new sectional overhead garage door. An embossed steel door with factory-baked enamel finish is durable and maintenance-free. We're assuming that your old garage door opener will work just fine with the new door.
3. Deck Addition – 113%
You get a slightly better return if you use wood decking vs. composite decking. This is probably due to the higher cost of the composite materials. The sample project includes a full railing, three steps down to the yard, and a built-in bench and planter.
4. Minor Kitchen Remodel – 111%
Keep your emphasis on the "minor" if you're looking to recoup your costs. Leave the cabinet boxes in place but replace the wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops with new laminate. Remove and replace resilient vinyl or linoleum floor with same. The "major" remodel involves the same as above except the scope is expanded to include replacement of all appliances and cabinets. Major kitchen remodel returns 95% of actual costs.
5. Basement Remodel – 107%
Finish the lower level of your house to create an entertaining area with wet bar and full bath. Return is probably greater if you're adding bedrooms.
6. Attic Bedroom Remodel – 105%
Convert unfinished attic space to one or more bedrooms plus a full bath. Extend your existing heating and cooling system to include the new space, and provide electrical lighting and wiring. Use the existing stair and railing to the attic.
7. Window Replacement – 105%
Replacing your old drafty single-pane windows with double-pane insulated replacement windows is a popular remodel these days. For best resale value, use wood windows with clad exterior finish. If you replace with insulated vinyl windows your return is only 95% of cost. Of course you'll have energy savings no matter which window type you use, as long as it is insulated.
8. Bathroom Remodel – 102%
Here we're talking about the remodel of a standard 5x7 bathroom – not the luxury master-bedroom sized bath. Replace all fixtures and faucets, install new recessed medicine cabinet, install new ceramic tile floor and tub/shower surround. Plumbing fixtures remain in the same place.
And, just for comparison you may want to know the three project types with the worst resale value: installing a backup power generator – 46%; home office remodel – 63%; sunroom addition – 68%.
For full details see the Cost vs Value Report 2010-11 on Remodeling Magazine's website www.remodeling.hw.net
