In general, outdoor replacement projects are able to recoup more of the expenditure than discretionary remodeling projects, such as knocking down walls for major interior remodeling plans. Amazingly, last year, exterior projects were shown to have increased their ROI over the previous six years. One theory for this is the influence of curb appeal. The first impression of a home’s exterior shapes how a buyer views the rest of the house, so the exterior appearance plays a major role in selling a home. Some of the best exterior projects include siding replacement, window replacements, and door replacements. The cost of replacement windows and other exterior updates can be well worth the ability to quickly sell a home.Below is a list of the most valuable remodeling projects and the average percentage of the project’s price recouped at resale:
- Entry Door Replacement (fiberglass): 65.9%
- Entry Door Replacement (steel): 85.6%
- Roofing Replacement: 62.9%
- Siding Replacement (vinyl): 72.9%
- Siding Replacement (fiber cement): 79.3%
- Window Replacement (vinyl): 71.2%
- Window Replacement (wood): 73.3%
In general, replacement projects have a higher cost-to-value ratio over remodeling projects (e.g. kitchen remodels and home additions). A contributing reason is the overall lower cost of the project. Not only do these particular projects increase the aesthetic value of a home, they can add a great deal of energy efficiency to a home by insulating vital areas of heat loss. The functional purpose as well as the immediate visual impact makes replacement projects a good place to start when considering projects to update your home or prepare it for a resale.A Bright Outlook for Homeowners
These changes in the remodeling field come after six years of decreasing returns. That makes right now the best time homeowners have had in a long while to invest in their homes through home remodeling and replacement projects.
To see the full report by Remodeling Magazine, click here.