Homeowners often consider various remodeling and replacement projects as a way to add value to their homes. According to the 2015 Remodeling Cost vs. Value Report, some projects add more value and better recoup their costs than others. The report compares changes in home improvement project costs with Realtor® perceptions of what those projects contribute to a home's price at resale.
Per the report, a steel entry door replacement is expected to return the most money, with an estimated 101.8 percent of costs recouped upon resale. The steel entry door replacement is consistently the least expensive project in the annual report.
Rounding out the top projects in terms of cost recouped:
Manufactured stone veneer (92.2 percent)
Garage door replacement (88.5 percent)
Siding replacement with fiber cement (84.3 percent)
Siding replacement with vinyl (80.7 percent)
Wood deck addition (80.5 percent)
Minor kitchen remodel (79.3 percent)
Wood window replacement (78.8 percent)
Since 2003, replacement projects have resulted in a higher financial return than remodeling projects. However, the gap between replacement and remodeling projects became bigger this year, with both categories declining in value. The biggest contributing factor to the slip is the consistent rise in costs for these projects, with home values rising at a slower pace.
Source: National Association of Realtors®
Reprinted with permission from RISMedia. ©2015. All rights reserved.