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2011-2012 Cost vs. Value: Which Remodeling Projects Pay Off the Most?

By Melissa Dittmann Tracey, REALTOR® Magazine

When tackling home remodeling projects, you’ll find some projects pay off more than others at times of resale. Remodeling Magazine, in conjunction with REALTOR® Magazine, recently released findings of its annual Cost vs. Value report for 2011-2012, revealing which remodeling projects offer the biggest bang for your buck.

Overall, the trend right now is replacement over remodeling–swapping out the old for the new rather than doing a total gut job, which can be much more costly.
This year’s Cost vs. Value report found that exterior replacement projects–such as new garage doors and a new entry door–offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.

The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale:

• Replacing the entry door to steel
  Estimated cost: $1,238 // Cost recouped at resale: 73%

• Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)
  Estimated cost: $50,148 // Cost recouped at resale: 72.5%

• Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)
  Estimated cost: $19,588 // Cost recouped at resale: 72.1%

• Garage door replacement
  Estimated cost: $1,512 // Cost recouped at resale: 71.9%

• Deck addition (wood)
  Estimated cost: $10,350 // Cost recouped at resale: 70.1%

• Siding replacement (vinyl)
  Estimated cost: $11,729 // Cost recouped at resale: 69.5%