Home Rehabs can put Money back in a Seller’s Pocket

Even in these rough economic times, investing in your home still pays off. According to REALTOR® Magazine, despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.

Remodeling magazine's annual report, 2008-2009 Cost vs. Value Report, shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market.

Responding to a survey in the summer of 2008, REALTORS® said that home owners could expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects.

Top 10 Project Paybacks

Exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When compared against the national averages, replacement projects that boost curb appeal (i.e. siding, windows, and decks) give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7% return)
2. Midrange wood deck (81.8% return)
3. Midrange vinyl siding (80.7% return)
4. Upscale foam-backed vinyl (80.4% return)
5. Midrange minor kitchen remodel (79.5% return)
6. Upscale vinyl window replacement (79.2% return)
7. Midrange wood window replacement (77.7% return)
8. Midrange vinyl window replacement (77.2% return)
9. Upscale wood window replacement (76.5% return)
10. Midrange major kitchen remodel (76.0% return)

Despite declines in overall remodeling dollars spent and a still shaky housing market, "people’s homes are still one of their best, most solid investments," said Paul Zuch, president of Capital Improvements, a designing, building, and remodeling company in Dallas. "Even though the markets have gone through some adjustments, it’s still smart to invest in your home."

… excerpts from REALTOR® Magazine article by G.M. Filisko / December 2008