The 2017 Cost VS Value Report compiled by Remodeling Magazine is celebrating a milestone anniversary, with its 30th year of publication!
The Cost VS Value report is so popular because it not only shows detailed analysis of best projects for the return on your investment when you sell your home, but the report is also broken down by region. Within this year’s report there were 3 noteworthy take-aways:
- Exterior “curb appeal” improvements generally pack a bigger payback than interior projects
- Inexpensive improvements are easier to recoup than pricier remodeling projects
- Replacement projects usually net more than remodeling/expansion projects—which may explain the relatively low returns on kitchen and bath remodels/additions
Here in the Pacific Region, three projects rose to the top – attic insulation, upscale garage doors, and adding engineered stone veneer. All 3 projects recouped over 100% of their project costs. Conversely, the three least profitable projects – an outdoor living room, bathroom addition, and upscale composite deck – recouped between 60% to 65% of their costs.
This week on Mercer Island Pulse we’ll be exploring the top three remodeling projects, via Houzz Stories, that produce the best returns in our region. Stay tuned for the first post discussing attic insulation.
If you would like to explore the full Pacific Region report covering a total of 29 projects, including project descriptions and scope, click here!
The 2015 Remodeling Magazine Cost vs Value* Report numbers clearly demonstrate the most important remodel trend for projects centers on “less is more.” This proved true for both the Pacific Northwest statistics, and nationally. And here’s a noteworthy trend in the PNW statistics: the incredible percentage of the remodeling cost recouped at resale. The top 5 PNW projects all gave back over 100% of your investment. One more reason why the Pacific Northwest Region rocks!!
The top five projects for cost recouped at the national level mirrors the PNW list pretty closely. Fiber cement board siding made the list nationally, while minor kitchen remodel is part of the PNW top 5. The percentage of cost recouped nationally ranged from over 100% to 82.5%– not too shabby of a return at all!
Here are a couple of the general rules that emerged in the 2015 Cost vs Value report, across most regions, supporting the ROI of replacement work within the home:
Simpler, lower-cost projects tend to return greater value.
First impressions are important.
The replacement steel entry door project is the only one, on a national basis, recouping more than 100% of its construction cost. Since it’s also the lowest cost project in the report, less is more is demonstrated quite clearly in this statistic! Further, with manufactured stone veneer’s debut in the 2015 report- and inclusion in the top 5 both nationally and locally in addition to those important curb appeal items like new entry and garage doors- gives a huge nod to the importance of first impressions buyers can see immediately.
*The cost-value ratio within this report details resale value as a percentage of the construction cost for the remodel project. For example, when the cost and value are equal, the ratio even is 100%. When the construction cost is higher than the resale value, the reported ratio is less than 100%. When resale value is higher than the construction cost, the ratio exceeds 100%.