Though how much homeowners recouped from their remodeling projects dropped from 2007 to 2008 compared with the previous year, they didn’t nosedive as would be expected from the negative reports concerning the real estate market. And they certainly didn’t drop as much as they did from 2006 to 2007.
According to Remodeling magazine’s Remodeling Cost vs. Value Report 2008-09, the decline of the average cost-value ratio across all projects was only 3.86 percent, just 2.7 points down from 2007. Only three upscale projects – bathroom remodel, deck addition (composite) and siding replacement (foam-backed vinyl) – saw an increase in costs recouped from 2007 to 2008.
The new report shows the trend of smaller, lower-cost maintenance-related projects continuing as the most popular and recouping the most upon resale. Siding and window replacement occupy seven of the top 10 rankings for costs recouped. Remodeling magazine attributes that, in part, to the fact that they’re usually necessary repairs involving durable, low-maintenance materials and improve curb appeal, and partly because, at a construction cost of between $10,000 and $14,000, they’re among the lowest-priced projects in the survey. Energy efficiency and prices also play a major role in costs recouped from window replacement, especially in homes more than 15 years old in which new windows also reduce maintenance and increase curb appeal.
On the other hand, trends show that the upscale versions of deck, garage and master suite additions and roofing replacements score lower than the midrange versions – reaffirming that homeowners scale back during economic downturns, according to Remodeling magazine. And other low-scoring projects – back-up power generator, home office remodel and sunroom additions – are often not improvements worth paying for for many potential buyers.
Here’s a look at some remodeling projects, their costs, the amount recouped in resale and how the current figures compared with the last report:
Source: Remodeling magazine
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