Monday, April 29th, 2013
For example, an entry door replacement costs $1,137 in the South Atlantic; the cost recovered can be around $974, which is more than 85 percent. Cladding your exterior wall with Atlanta James Hardie siding, on the other hand, may cost $13,083; cost recovered can be at least $10,379, roughly below 80 percent. At first glance, it may seem that indoor remodeling has the upper hand.
If you’ll do a bit of math, however, you’ll find that $2,704 recovered from fiber cement siding vastly outgrosses the $163 recovered from replacing the front door. Realtors advise against heavy focus on indoor projects if you plan on selling the house, as the returns are quite low in market value. Cost recovery is commonly discussed every year by Realtors and remodeling experts.
This is a topic that is regularly researched by the National Association of Realtors in cooperation with Remodeling magazine. Brokers and appraisers across the country are surveyed to provide their opinions and estimates.
Remodeling is a “rebuilding” of an area of a home with a long term outlook as opposed to a “sprucing up” which is considering a shorter term outlook. Remodeling usually considers two factors; personal enjoyment of the improvement and it’s effect on the resale value of the home.
Speaking of cost returns, fiber cement siding tops other exterior cladding materials in the category in 2013. It defeats the more common vinyl siding, which is only able to recuperate roughly 73 percent of the cost. Even with foam backing, which is slightly more expensive than fiber cement, vinyl siding can only return roughly 72 percent.
The 2012-2013 report is clear, start outside. Six of the top ten mid-range projects and eight of the top ten upscale projects are exterior improvements and that makes sense. Outdoor projects make excellent investments because they enhance the buyers first impression of your home.
Overall, recovered costs have increased by more than 3 percentage points from last year; an average remodeling project costing more than $42,000 will return about 61 percent of the cost. Although the average amount dropped slightly, experts believe it’s no indication of a troubled housing market in the foreseeable future.
So the next time you’re planning on putting your home in listings, start outside, as the report says. For your fiber cement siding needs, contact an Atlanta siding contractor like Nehemiah ReConstruction.
(Article video and excerpt from “Real Estate Remodeling Cost vs. Value,” WJBK-TV [via MyFoxDetroit.com], April 29, 2013)