Biggest Returns on Remodeling
15:38 EDT, April 8th, 2007

 

Posted on Sat, Feb. 10, 2007
ANNUAL COST VS. VALUE REPORT Biggest returns on remodeling ALLEN NORWOOD Home Editor It's no surprise that improving your home's curb appeal adds value. It might surprise you to learn, though, that siding replacement ranks above bath and kitchen improvements in Remodeling magazine's annual Cost vs. Value report. The annual survey looks at the costs of remodeling projects, and the percentage you'd recover if you sold in a year. (Charlotte wasn't included in the 2006 averages, but Raleigh and Columbia were). So if you're planning a remodeling project, use this survey for general guidance -- not a precise calculation -- on which projects could add the most value to your home. The most expensive, over-the-top remodeling projects tend to recoup a smaller portion of their costs than reasonably priced projects. One thing to remember: Though home improvement TV shows promise big returns on some remodeling projects, it doesn't happen in an instant. But the longer you stay in your home, the more your improvements appreciate. "If you have to sell in the first year, you might take a 20 percent loss," said Charlotte remodeler David Tyson. "If you stay five years, you'll do far more than gain (your investment) back." Annual Cost vs. Value Report Siding Ranks at Top Nationally, new siding ranked at the top of Remodeling magazine's annual Cost vs. Value report. (See national chart on Page 4E). On "mid-range" projects, replacing old siding with new vinyl returned 87.2 percent of the cost. On "upscale" projects, new fiber-cement siding returned 88 percent. Charlotte remodeler David Tyson and the magazine say that's because new siding improves curb appeal. "Also, new siding is more likely to be low maintenance, and that's important," said Tyson. Charlotte appraiser Will Granger says that most owners don't replace siding unless the original is in bad condition -- peeling and crumbling -- so the improvement is dramatic. Totaled up, the figures in the report tend to confirm the old adage: You don't want the most expensive house -- or countertops -- in your neighborhood.