For example, replacing old windows will generate a higher payback ratio than adding a high-end kitchen with all of the bells and whistles and it costs significantly less, according to Stephen Melman, an economist with the National Association of Home Builders.
Maintenance-related projects, such as siding and window replacement, are especially popular because they are repairs that are seen as needed, but can also help improve curb appeal at fairly low costs in relation to other projects.
The top-ten midrange projects cited in Remodeling magazine’s “Cost vs. Value Report” that provide the highest percentage return are:
1. Deck Addition (wood) - 81.8 percent
2. Siding Replacement (vinyl) - 80.7 percent
3. Minor Kitchen Remodel - 79.5 percent
4. Window Replacement (wood) - 77.7 percent
5. Window Replacement (vinyl) - 77.2 percent
6. Major Kitchen Remodel - 76.0 percent
7. Bathroom Remodel - 74.6 percent
8. Attic Bedroom - 73.8 percent
9. Deck Addition (composite) - 73.7 percent
10. Basement Remodel - 72.9 percent
These numbers represent the national average and percentages may vary in your region. To get information on projects that are the best investment for your area, check out the Remodeling magazine’s “2008-2009 Cost vs. Value Report” published by Hanley Wood online at http://www.costvsvalue.com/.
