McClurg's Home Remodeling Blog

2012 Remodeling Cost vs. Value Report

Posted by Lauren Szczygiel on Tue, Jul 24, 2012

Exterior Door ReplacementScott McClurg was recently interviewed on NewsChannel 9's “Bridge Street” about home remodeling projects that provide the best (and worst) return on investment (ROI).

Scott referenced REMODELING Magazine’s "Cost Vs. Value Report 2011-12”, which provides detailed information about the average cost of 35 popular remodeling projects and the amount a homeowner can expect at resale after making the investment in their home.

While the report gives consumers a good idea about project costs, always consider these three questions when planning a remodeling project:

  1. What do I gain by remodeling? Many people remodel to enrich their lifestyle and enjoy their home. To them, this is the true return on investment in their home.

  2. How long do I plan to own this property? If you're planning to live in your home for less than five years, take on remodeling projects that freshen up the inside of the home and promote curb appeal.

  3. How does the value of my home compare to other properties in the area? Generally, a remodeling project that is less than 20 percent of the average resale value in your area can be recouped when your home is sold.

The tables below compare remodeling costs to resale values for midrange and upscale remodeling projects in the Middle Atlantic region, which includes New York, New Jersey and Pennsylvania. According to REMODELING Magazine's report, different remodeling projects offer a wide range of payback. For 2012, ROI (shown in the tables below as the % of Cost Recouped at Resale) declined slightly by 1 or 2 percentage points for most projects due to a sluggish economy. Both tables list projects ranked by the greatest percentage of payback.

 

Midrange ProjectAvg. CostResale Value% Cost Recouped
Add an attic bedroom $53,871 $38,113 68
Replace front entry door with steel door $1,293 $861 67
Vinyl siding replacement $12,024 $8,068 67
Garage door replacement $1,565 $1,025 66
Minor kitchen remodel $20,067 $13,050 65
Wood deck addition $10,490 $6,763 65
Vinyl replacement windows $11,904 $7,441 63
Major kitchen remodel $59,731 $36,346 61
Wood window replacement $12,858 $7,838 61
Two-story addition $172,435 $101,314 59
Composite deck addition $15,900 $9,393 58
Master suite addition $112,788 $63,821 57
Bathroom remodel $17,551 $9,772 56
Basement remodel $67,860 $38,113 56
Family room addition $87,989 $48,429 55
Roofing replacement $23,189 $12,500 54
Entry door replacement - fiberglass $3,644 $1,976 54
Garage addition $60,994 $31,896 52
Bathroom addition $42,832 $19,912 47
Sunroom addition $77,136 $35,662 46
Backup power generator $15,617 $7,240 46
Home office remodel $28,955 $11,296 39

Upscale ProjectAvg. CostResale Value% Cost Recouped
Fiber cement siding replacement $13,630 $9,671 71
Foam-backed vinyl siding replacement $14,607 $9,720 67
Garage door replacement $3,019 $2,015 67
Vinyl replacement windows $15,116 $9,167 61
Wood window replacement $19,787 $11,217 58
Grand entrance - fiberglass $7,781 $4,477 58
Major kitchen remodel $114,041 $62,871 55
Bathroom remodel $55,029 $27,877 51
Roofing replacement $41,269 $21,268 52
Deck addition (composite) $38,872 $19,530 50
Garage addition $90,995 $43,296 48
Master suite addition $236,937 $112,033 47
Bathroom addition $80,596 $37,319 46

Estimates for project costs and resale values were developed by a Research Team for REMODELING Magazine. The value you can expect to recoup at resale from your remodeling project is contingent on what the contractor brings to the table. Price quotes will vary so it is important to consider a contractor’s experience and the materials that will be used for the project. In selecting a contractor, review the portfolio of the contractor’s work and ask to visit projects the contractor has completed. 

 

Free Guide: How To Hire A Contractor

Click me

Topics: REMODELING Magazine, Cost vs. Value

Subscribe to Our Blog

    Free Remodeling Seminar    

Most Popular Posts