2014 Cost vs. Value Report – What Projects Have a High ROI
The latest edition of the Remodeling Cost vs. Value Report is available, and it seems that exterior projects were among the most valuable home improvement projects in 2013. 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. 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 Boston, the projects with the most return on investment also included an attic bedroom at 107.8%, vinyl siding replacement at 94.2%, and steel entry door replacement at 92.8% for mid-range homes. All three of these were also in the top four projects for New England as well, along with a wood deck addition. For upscale homes in Boston, the top projects included fiber-cement siding replacement at 95.0%, garage door replacement at 91.0%, and foam-backed vinyl siding replacement at 88.7%. These were also the top three for New England upscale homes as well.
Click here to view the entire Cost vs. Value Report.