Home Improvement Returns...

In the past few weeks, many of you have started home improvement projects, hence the topic for this morning. Take a look at this year’s Cost vs. Value Report (there is a summary below) and you will notice some familiar projects ranked at the top. For the third year in a row, Siding Replacement–Fiber-Cement is the project with the highest percentage of cost recouped. In fact, the projects with the top-three highest returns on investment (Deck Addition–Wood and Siding Replacement–Vinyl, are ranked two and three, respectively) did not change from last year.

Returns have remained fairly steady among kitchen and bath projects because this is still where people want the money spent, so long as it’s spent wisely. If you go too crazy, then it limits the buyer appeal. This sentiment is reflected in the data. The Upscale Major Kitchen Remodel is the only kitchen project not in the top 10 in ROI, and its returns decreased 4.69% (fourth highest) from 2007.

South Atlantic — Midrange

2008-09 National Averages

Job Cost	Resale Value	Cost Recouped	Project	Job Cost	Resale Value	Cost Recouped	Change vs. 2007
$42,683	$32,246	75.5%	Attic Bedroom	$48,398	$35,694	73.8%
$12,858	$7,999	62.2%	Backup Power Generator	$14,040	$8,026	57.2%
$54,288	$42,407	78.1%	Basement Remodel	$61,011	$44,467	72.9%
$33,959	$22,450	66.1%	Bathroom Addition	$38,078	$24,187	63.5%
$14,510	$10,953	75.5%	Bathroom Remodel	$15,899	$11,857	74.6%
$14,494	$11,006	75.9%	Deck Addition (composite)	$15,277	$11,260	73.7%
$9,370	$7,863	83.9%	Deck Addition (wood)	$10,601	$8,676	81.8%
$72,717	$51,301	70.5%	Family Room Addition	$81,315	$53,608	65.9%
$52,710	$36,960	70.1%	Garage Addition	$57,272	$38,161	66.6%
$26,465	$14,905	56.3%	Home Office Remodel	$28,094	$15,329	54.6%
$53,236	$42,104	79.1%	Major Kitchen Remodel	$56,611	$43,030	76.0%
$90,590	$64,719	71.4%	Master Suite Addition	$101,571	$67,037	66.0%
$20,320	$16,234	79.9%	Minor Kitchen Remodel	$21,246	$16,881	79.5%
$16,088	$11,661	72.5%	Roofing Replacement	$18,825	$12,336	65.5%
$9,326	$7,705	82.6%	Siding Replacement (vinyl)	$10,256	$8,274	80.7%
$67,670	$42,920	63.4%	Sunroom Addition	$71,745	$40,715	56.7%
$131,717	$102,338	77.7%	Two-Story Addition	$146,538	$103,553	70.7%
$9,496	$7,535	79.4%	Window Replacement (vinyl)	$10,537	$8,132	77.2%
$10,416	$8,215	78.9%	Window Replacement (wood)	$11,512	$8,946	77.7%

South Atlantic — Upscale

2008-09 National Averages

Job Cost	Resale Value	Cost Recouped	Project	Job Cost	Resale Value	Cost Recouped	Change vs. 2007
$67,892	$46,801	68.9%	Bathroom Addition	$74,325	$49,100	66.1%
$47,615	$34,369	72.2%	Bathroom Remodel	$51,455	$36,400	70.7%
$35,650	$23,503	65.9%	Deck Addition (composite)	$37,498	$23,706	63.2%
$79,044	$52,788	66.8%	Garage Addition	$85,844	$53,908	62.8%
$106,506	$78,086	73.3%	Major Kitchen Remodel	$110,964	$78,398	70.7%
$206,735	$135,088	65.3%	Master Suite Addition	$223,876	$136,764	61.1%
$31,112	$21,523	69.2%	Roofing Replacement	$36,296	$22,861	63.0%
$12,951	$11,785	91.0%	Siding Replacement (fiber-cement)	$13,177	$11,424	86.7%
$11,572	$9,716	84.0%	Siding Replacement (foam-backed vinyl)	$12,528	$10,074	80.4%
$12,257	$10,095	82.4%	Window Replacement (vinyl)	$13,608	$10,781	79.2%
$16,222	$12,576	77.5%	Window Replacement (wood)	$17,580	$13,455	76.5%