Replacement of roofing, steel and fiberglass entry doors, wood windows and steel garage doors gained in resale value last year, according to the just released Remodeling 2015 Cost vs. Value Report. Because remodeling costs rose 4.6 percent while housing prices increased slowly in 2014, some 30 out of 35 remodeling categories actually suffered payback losses.
In the Minneapolis area, only wood replacement windows and steel entry door replacements were judged to be worth more than they cost at resale, and only steel entry doors locked in a gain at the national level.
The annual study compares the cost of having contractors do 35 specific remodeling and replacement projects with the impact that Realtors predict the improvements would have on the resale value of the home.
Many categories had enjoyed payback gains the previous year as the housing market started its comeback and contractor prices were relatively low. The new report says as much about Realtors’ state of mind as anything else. Once again, mid-range priced projects offered better return on investment than upscale projects, and straightforward replacements beat complex, costly remodelings.
Of course, resale value only matters if you are planning to sell your home in the near future. The most important consideration is how a project will enhance the comfort, enjoyment and longevity of one’s home. Although less tangible than cash, it’s hard to put a value on an updated kitchen that encourages family interaction and entertaining or an exterior facelift that makes you proud to come home.
The study measures projected paybacks at the metropolitan, regional and national levels. In the Minneapolis metropolitan area Realtors concluded that wood replacement windows would be worth 5.8 percent more than they cost if the house were sold in the next year. Steel entry doors gained 4.6 percent in value. The next nearest return was installation of stone veneer exterior accent siding, which lost 13.2 percent of its value.
Contact Hoffman Weber today to price your remodeling or replacement project.
Complete data from the Remodeling 2015 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.