The Cost vs. Value Report from Hanley Wood is an incredibly helpful report that shows the estimated cost recouped from popular home improvement projects. It’s even separated by region. In this case, we’ll be looking at the Metro DC area.
The report is separated into Midrange and Upscale projects, which depends on the value of the home in which the projects were done.
Here’s the complete report: http://www.remodeling.hw.net/cost-vs-value/2014/south-atlantic/washington-dc/
In each category, there were three projects in particular that actually recouped more than the initial cost of the project.
In the Midrange category, the winners were steel entry door replacement (125%), wood deck additions (112.3%), and garage door replacement (114%). In the Upscale category, the winners were fiber-cement siding replacement (123.9%), garage door replacement (110.4%), and foam-backed vinyl siding replacement (104.7%).
To see entry door replacement winning in the Midrange category isn’t all that surprising. The idea that it can actually profit an average of about $250 over initial cost at resale goes to show that entry doors are an extremely important part of a home’s resale value. Of course, typically a front door is a visitor’s first impression of a home, so this isn’t all that surprising. It is interesting that steel entry doors win in this category, whereas fiberglass doors only recoup about 89% of initial cost at resale. Steel doors, however, are much less expensive than fiberglass (average cost of $1142 for steel versus $2803 for fiberglass.)
What’s especially interesting about these numbers is that in both categories, garage door replacement saw more money recouped at resale than the initial cost of the project. Garage doors are obviously an important part of the house, and definitely have much to do with curb appeal. But this is typically one thing you wouldn’t expect to see so highly on a Cost vs. Value report.
Siding replacement is definitely to be expected to recoup a good amount, especially on higher value homes, as a house with brand new siding tends to sell for a lot more than a home that looks to need its siding replaced in the near future. But a nearly 24% profit over initial cost is quite a staggering number. Foam-backed vinyl siding, while it can look pretty good, only recouped a nearly 5% profit. It would seem that despite vinyl siding actually being a bit more expensive, fiber-cement siding actually recoups a far greater return on investment.
Also, while not in the top five, both minor and major kitchen remodels in the DC area are recouping between 90-100% of initial project cost at time of home sale! Even if you’re not planning to sell, though, it’s good to know your kitchen will eventually pay for itself!
In any case, according to the report, most popular remodels recoup between 75-100 percent of the initial cost investment at resale. So if you’re planning to put your home on the market in the near-future, any major remodeling is well-worth the investment. Kitchen remodels and additions are still well worth the investment, not to mention the emotional value that they add. It’s also important to note, though, that your entry door and garage door may in fact be the best investments of all.