Remodeling on the Rise, But Which Project Is Best?
By Bill Primavera
The Home Guru
In the past month, several contractors and architects have told me that their remodeling projects are on the rise and, actually, are on a higher level than in the heady days of real estate before the recession.
Who’s engaging all this work? Two markets: home owners who have decided to stay put for a while and want to upgrade for themselves, and home sellers who want to beat out the considerable competition in getting their homes sold.
Of help to those in either category is an annual survey that ranks those remodeling projects that are most preferred for their resale value, making the greatest sense in terms of recouping costs. Conducted by Remodeling Magazine among realtors in 80 cities, the results are reported in the January issue of Realtor Magazine, published by the National Association of Realtors.
This year, the five top ranked projects among a list of 35 possibilities, including those of both midrange and upscale costs, prove that first impressions still matter most. That is, those features that hit buyers from the moment they step from their cars.
At the top of the list is a midrange front door replacement, capturing the highest payback at a national average of 102.1 percent, followed by a midrange garage door replacement, with an 83.9 percent return. Third place is replacement siding, with a return of 80 percent of its cost, followed by a midrange kitchen remodel that recoups an average of 72.8 percent of costs. Fifth place goes to a wood deck addition that generates a 72.8 percent return.
What was most noteworthy in view of the slow-growing economy is that four of the top five projects were midrange investments aimed at sellers on a budget. For each project, special advice is offered to make them successful.
For entry door replacement, a 20-gauge steel unit is suggested, including a clear dual pane half glass panel, jambs and an aluminum threshold, along with replacement of the lock set with a new bored lock having a brass or antique brass finish. The cost would be $1,218, and the resale value is $1,243.
The new garage door would utilize the existing motorized opener, would be un-insulated, single-layer embossed steel with two coats of baked-on paint, galvanized steel hinges and nylon rollers. Its cost would be $1,291, with a resale value of $1,083.
The type of new siding recommended for replacement is fiber cement, which I personally prefer to vinyl for its look of solidity and a wood grain texture that looks authentic. It is available pre-primed and pre-painted. For 1,250 sq. ft. of siding, including all trim, the cost would be $13,382, with a resale value of $10,707.
Because buyers will always consider the kitchen the most important room in the house, realtors most often recommend at least a minor kitchen remodel where needed. There are tricks for getting a bigger bang for the buck from a minor upgrade, such as replacing only the fronts of the cabinets and using one of the new laminate countertops that convincingly mimic the look of marble or granite. But instead of laminate flooring, it is suggested that ceramic tile is a better choice for perceived quality and can be purchased for the same amount of money. An average cost of $21,695 for a kitchen upgrade can capture $15,790 at resale.
The fifth place remodeling project is a new wood deck addition, which is considered essential rather than discretionary in communities like ours where the majority of homes have outdoor living space. It is recommended that the deck not be too small (8 ft. x 8 ft.), which would be fairly useless, or too large (spanning the entire back of the house) where it’s difficult to recoup the cost. Recommended is a 16 ft. x 20 ft. deck using pressure-treated wood and joists, supported by 4 ft. x 4 ft. posts anchored to concrete piers. Including a built-in bench, stairs and complete railing, the average cost would be $10,973, of which $7,986 would be recouped when the house is sold.
The best interpretation of this renewed interest in remodeling is its harbinger of better home sales on the horizon, a nice New Year’s wish for 2011.
Bill Primavera is a licensed Realtor® (PrimaveraHomes.com), affiliated with Coldwell Banker, and a marketing practitioner (PrimaveraPR.com). Anyone considering selling or buying a home can reach him directly at 914-522-2076.