Will your project pay off? For a trustworthy estimate, consult Remodeling magazine's annual Cost vs. Value report to find comprehensive data you can use to gauge whether a given upgrade is likely to add home value.
The methodology of the report evolves every year. Currently, three streams of information are taken into account: typical project costs, home sale prices, and survey data from the National Association of Realtors.
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You can't know the exact dollar amount to be returned by a renovation you're considering, but the report may help you locate the sweet spot between adding home value and going overboard-spending more than you're likely to recoup upon resale.
Most useful are the regional estimates indicating the likely return for upgrades, whether routine or extravagant. Nationally, the top five high-value projects are:
- Replacing an entry door
- Replacing siding
- Replacing a deck
- Replacing a garage door
- Completing a minor kitchen remodel
This hit parade underscores the overriding caution that pervades most home improvement projects. While replacement projects return a national average of 67.6%, remodeling projects that incorporate upgrades, on average, return 59.7% of the initial investment.
For more on return on investment, consider:
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