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Times are very tough right now in the real estate market (understatement of the year), so it would be a great idea for homeowners to take advantage of this lull and consider tackling an overdue remodeling project, or two, for a variety of excellent reasons.
When the housing market slows, people stay put and renovate their homes to make themselves more comfortable. I’ve been to the big box home improvement stores just about every weekend for the past couple of months and have noticed a considerable amount of traffic still going on. I realize that sales are down in these stores but many homeowners in a financial position to make improvements to their homes are making the most of it. It’s a wise move.
Remodeling Magazine recently released an index of top 10 home remodeling projects showing ROI (return on investment). See how your particular project stacks up against others.
See how the home renovation project that you are considering stacks up against national averages for recouping your costs.
Cost vs. Value. That is the BIG question that many homeowners stress over before starting out a remodeling project. The key here is to agree upon a project, or addition, that will benefit your current living situation while at the same time keeping an eye on the almighty dollar and how much of it will come back to you when it’s time to sell (ROI).
The trick here is to know what improvements your neighbors have made to their homes to keep up with the neighbors without over-improving. Never price yourself out of your neighborhood if you plan on moving in your lifetime and you want to recoup a good portion of your costs. The moral to the story is "know your neighborhood".
The obvious and easiest place to start are kitchens and bathrooms, it would seem. Everyone probably knows that most of your money will boomerang back to you if you do the right things in a kitchen and/or bathroom remodel. But you might be surprised to learn some of the other areas of your home that could give you the greatest potential for return. For instance, the report shows that you will recoup 81% of your costs for a simple 16′ x 20′ wooden deck.
Currently, you should be considering the following list of exterior remodeling projects that boost curb appeal to insure your ability to recoup your costs. Here are the top 10 remodeling projects showing national averages, for your consideration (follow the link to show the basis for costs of each project):
1. Upscale fiber cement siding (86.7%)
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%)
4. Upscale foam-backed vinyl (80.4%)
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%)
7. Midrange wood window replacement (77.7%)
8. Midrange vinyl window replacement (77.2%)
9. Upscale wood window replacement (76.5%)
10. Midrange major kitchen remodel (76.0%)
Source: Remodeling Magazine
The above data shows the Top 10 2008-09 National Averages. Go the Source link for the full National Average report.
Here’s a snapshot of 2008 National Averages..
*via Realtor Magazine
Good luck with your project. Now is the time.
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I started as a home-stalker… visiting brand new homes under construction in the neighborhoods near my house. That inspired me to write about home building and home renovation projects — chronicling homes during different phases of construction from a consumer's point-of-view. Basically, the tips you'll find in my articles are a collection of checklists for what I think should (and should not) go into building or remodeling a quality home.