Home sellers considering a remodel to add curb appeal to their home will be glad to know that the return on investment is likely higher this year than last.
But not all remodeling projects are created equal when it comes to the “payback” value, or how much of the cost of the renovation you will get back upon resale.
According to the Remodeling 2016 Cost vs. Value Report (www.costvsvalue.com), eight of the top 10 highest payback projects nationwide are exterior projects such as manufactured stone veneer, new siding or exterior decks.
In Denver, the highest return is on the addition of manufactured stone veneer, reported to return nearly 100 percent of the average cost of $7,511. Next up is attic insulation with an 87.4% home resale return on $1,272 in cost. Minor kitchen remodels—averaging $19,744—will return 87 percent; while engineered siding replacement with a cost of $13,695 will payback 83.7 percent.
Rounding out the top 10 list in Denver are:
-Garage door replacement, 81.9 percent
-Family room addition, 81.6 percent
-Fiberglass entry door replacement, 81.2 percent
-Two-story addition, 79.6 percent
-Wood deck addition, 78.1 percent
-Steel entry door replacement, 77.6 percent
“It’s a sign that the housing market is improving [nationwide]. There’s a strong relationship between the payback on remodeling projects and the going price for homes,” says Remodeling Editor-in-Chief Craig Webb. He added that replacement typically has a bigger return on your investment than remodeling.
Remodeling cost rose four percent over last year.
The report analyzed 30 remodeling project categories in 100 markets nationwide, assigning the latest cost based on data. Resale values were assigned by the National Association of Realtors.
For the full Remodeling 2016 Cost vs. Value Report on Denver, visit https://s3.amazonaws.com/HW_Assets/CVV_Assets/2016/Consumer/denverco.pdf .
Owner and Founder
RE/MAX of Boulder