The National Association of Realtors just released The 2008 Cost vs. Value Report. The Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country and found that exterior remodeling projects return the most money as a percentage of cost.
The resale value of any given remodeling project depends on a variety of factors; A homes overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project. Not every neighborhood will support additional renovations, thats why its important to consult with professionals like Realtors in your area. Realtors see hundreds of homes every year and can provide valuable insight into what projects and improvements will make a difference with buyers in your area.
Here are some of the highlights from the survey:
Wood deck additions and all types of siding replacements returned more than 80 % of project costs
All types of window replacements upscale and midrange 76 %
A major midrange kitchen remodel: 76.0 %
A minor midrange kitchen remodel: 79.5 %
A midrange bathroom remodel: 74.4 %
A midrange attic-to-bedroom conversion: 73.6 %
Midrange basement remodel: 72.7 %
The regions that generally returned the lowest percentage of costs were New England, East and West North Central, and Middle Atlantic
This Week's Real Estate Insight:
While these renovations will not return 100% of the investment, they often can mean the difference between your house even selling at all, potential buyers become their own contractors and go around adding up all the potential costs and subtract that from their offering price. You might be apprehensive about a major renovation in this economy, but that can work in your favor; you can probably bargain with contractors as they are feeling it too. But dont go just by price, make sure you get good references for contractors
