Many homeowners undertake remodeling projects in an effort to boost their home’s resale value. But, which home improvements give you the best bang for your buck? Remodeling Magazine has just released its annual Cost Versus Value report for 2014 and editors say that the value is up for each of the 35 projects included in the survey — a trend that continues from 2013.
What is Cost Versus Value?
The cost-value ratio is a measurement of resale value as a percentage of construction cost. When the project’s cost and value are equal, the ratio is 100%. If the cost is higher than its value, the ratio is less than 100%. When the resale value is higher than the project’s cost, the ratio is more than 100%.
Home Improvements with the Best Value
Looking at the data for the South Atlantic region (which includes Virginia, Maryland, Washington, D.C. and West Virginia), here are the report’s top 5 home improvements in terms of cost recouped at resale:
- Entry Door Replacement (steel): This low-cost project yields more than 100% of its job cost. Replacing a front door adds curb appeal, modernizes the exterior, improves home security and can add more natural light.
- Deck Addition (wood): Adding an outdoor wooden deck with railings and extra features such as a built-in bench and planter will net 89% of the project’s cost in added value. But the real benefit of an outdoor deck is the extra living space it provides.
- Garage Door Replacement: Another low-budget project, a new garage door spruces up your home’s exterior and offers additional modern access options like remote programming and keypad entry. At a resale value of 89% of its cost, a garage door replacement is a smart fix.
- Attic Bedroom: Putting your attic to work as an extra bedroom adds living space now and can net 88% of its cost when you sell. This project has been trending upward and experts say that the uptick is because the attic bedroom and the basement remodel both represent inexpensive alternatives to a home addition.
- Window Replacement (wood): Window replacements are relatively inexpensive compared to other types of remodeling projects, but they add 84% of their cost in resale value, plus so much more. New windows make a home look more attractive on the outside and make it more comfortable on the inside. Double insulation regulates indoor temperatures and decreases your energy bills.
Kitchen and Bathroom Remodeling
While most more expensive projects didn’t fare as well in the study, one exception is the upscale Bathroom Addition. It ranked just ahead of the midrange version, suggesting that the market is willing to pay for bigger and well-appointed bathrooms.
Overall, the best-performing project in the Kitchen and Bath category was the Minor Kitchen Remodel, which includes new appliances and countertops, and a facelift for existing cabinets. Even though it is not the least expensive project in the category, it’s worth more of its cost in value.
DC Area Among Top 10 Markets
This year, Remodeling Magazine added 19 new markets to those surveyed for its annual report, bringing the total number surveyed to 101. The greater Washington, DC metro area is among the “Top 10 Cities” showing an average cost-value ratio above 80%. In business since 1990, Modern Remodeling, Inc. is a highly preferred contractor in northern Virginia, Maryland and the entire metro DC area for residential and commercial renovation, remodeling and construction services. Talk to us today about your project!
