Improvements with Payback
According to the Cost vs. Value Report, replacing your vinyl siding is the least expensive way to add value and increase the selling price of your home. Replacing wood windows and performing a minor kitchen remodel ($17,000 or less) tie for second place on the list of high-impact home improvements to help you sell. The third most profitable home improvement to add value to your home is a bathroom makeover ($12,000 or less).
| Project | Job Cost | Resale Value | Average ROI |
| Vinyl Siding Replacement | $9,134 | $9,416 | 87.2% |
| Window Replacement (wood) | $11,040 | $17,928 | 85.3% |
| Minor Kitchen Remodel | $17,928 | $15,278 | 85.2% |
| Bathroom Remodel | $12,918 | $10,970 | 84.9% |
| Window Replacement (Vinyl) | $13,120 | $11,109 | 84.7% |
| Two-Story Addition | $105,297 | $87,654 | 83.2% |
| Major Kitchen Remodel | $54,241 | $43,603 | 80.4% |
| Attic Bedroom Remodel | $44,073 | $35,228 | 79.9% |
| Basement Remodel | $56,724 | $44,685 | 78.8% |
| Deck Addition | $14,728 | $11,307 | 76.8% |
Know Your Neighborhood
Before you decide which home improvement project adds the most house value, do a little competitive research by finding out what features are popular with other homes in your neighborhood. If most houses in your neighborhood are about 15 to 20 years old but have upgraded kitchens with contemporary countertops, tile flooring, and stainless steel appliances, you'll net a better return if you invest in a minor kitchen remodel. By knowing your neighborhood, you'll get a better sense of what projects are the best home improvement values for your dollar.
Know Your Region of the Country
Not only should you know your neighborhood, but you should also know your region. Consider a remodeled basement which, nationally, offers 78.8% ROI; widely popular with buyers in some parts of the country (in the Pacific, it nets a 92.7% ROI), remodeled basements are not as popular in other parts of the country (in New England, its ROI is only 61.9%). To help you sell now, know what buyers in your area prefer.
According to the Coast vs. Value Report, each part of the country has unique home improvement values. While a kitchen or bath remodel can net a hefty ROI in the Midwest, the best ROI on the East Coast comes from home improvements that save energy or maintenance, like sliding and window replacements.
*The 2006 Cost vs. Value Report (a combined effort by Remodeling magazine and REALTOR® Magazine) can be downloaded at http://www.lowesmoving.com/images/pdf/115.pdf
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