Home Girls: Cost vs Value -Big-Bang Remodeling Projects

This article was provided by our Home Girl Nan Skinner

By Erica Christoffer

Optimizing the use of space in a home will not only attract buyers but also give sellers more bang for their buck, according to Remodeling’s “2011–12 Cost vs. Value Report,” conducted in cooperation with REALTOR® Magazine and NAR’s HouseLogic.com.

An attic bedroom addition costing $50,148 was expected to recoup 72.5 percent of the cost nationally—inching up 0.3 percent from the 2010–11 report. The minor kitchen remodel also fared well, returning an estimated 72.1 percent of the nearly $20,000 job cost.

The report looks at the estimated cost and expected resale return of 35 midrange and upscale remodeling projects in 80 markets.  The estimated costs and returns were derived from a survey of more than 3,000 REALTORS® conducted last summer. As in past years, REALTORS® picked exterior projects to recoup the most at resale. Among those, new fiber-cement siding was expected to provide the highest return, recouping an estimated 78 percent of the $13,461 cost.

Top 6 Returns

Siding Replacement (upscale) - fiber-cement     

Job Cost: $13,461

Resale Value: $10,493

Cost Recouped: 78%

Entry Door Replacement - steel    

Job Cost: $1,238

Resale Value: $903

Cost Recouped: 73%

Attic Bedroom Addition              

Job Cost: $50,148

Resale Value: $36,346

Cost Recouped: 72.5%

Kitchen: Minor Remodel             

Job Cost: $19,588

Resale Value: $14,120

Cost Recouped: 72.1%

Garage Door Replacement              

Job Cost: $1,512

Resale Value: $1,087

Cost Recouped: 71.9%

Garage Door Replacement (upscale)               

Job Cost: $2,994

Resale Value: $2,129

Cost Recouped: 71.1%

Visit HouseLogic.com for remodeling and home maintenance advice.