2011-12 Cost vs. Value: Big-Bang Remodeling Projects

Find out which remodeling projects will provide the biggest bang for your buck this year, according to Remodeling magazine.

   March 2012 | By Erica Christoffer

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Optimizing the use of space in a home will not only attract buyers but also give sellers more bang for their buck, according to Remodeling’s “2011–12 Cost vs. Value Report,” conducted in cooperation with REALTOR® Magazine and NAR’s HouseLogic.com.

An attic bedroom addition costing $50,148 was expected to recoup 72.5 percent of the cost nationally—inching up 0.3 percent from the 2010–11 report. The minor kitchen remodel also fared well, returning an estimated 72.1 percent of the nearly $20,000 job cost.

The report looks at the estimated cost and expected resale return of 35 midrange and upscale remodeling projects in 80 markets.  The estimated costs and returns were derived from a survey of more than 3,000 REALTORS® conducted last summer. As in past years, REALTORS® picked exterior projects to recoup the most at resale. Among those, new fiber-cement siding was expected to provide the highest return, recouping an estimated 78 percent of the $13,461 cost.

Top 6 Returns

Siding Replacement (upscale) – fiber-cement      Job Cost: $13,461 Resale Value: $10,493 Cost Recouped: 78%

Entry Door Replacement – steel     Job Cost: $1,238 Resale Value: $903 Cost Recouped: 73%

Attic Bedroom Addition              Job Cost: $50,148 Resale Value: $36,346 Cost Recouped: 72.5%

Kitchen: Minor Remodel              Job Cost: $19,588 Resale Value: $14,120 Cost Recouped: 72.1%

Garage Door Replacement              Job Cost: $1,512 Resale Value: $1,087 Cost Recouped: 71.9%

Garage Door Replacement (upscale)                Job Cost: $2,994 Resale Value: $2,129 Cost Recouped: 71.1%

Remodeling’s2011-12 Cost vs. Value Report ©2011 by Hanley Wood, LLC. Republication or redissemination of the Report is expressly prohibited without written permission of Hanley Wood, LLC.“Cost vs. Value” is a registered trademark of Hanley Wood, LLC.Visit www.costvsvalue.com for information on all 35 projects. There, you can also download a free PDF providing information on average cost and resale value nationally, regionally, and in a specific market. Estimates for construction costs were compiled by HomeTech Publishing.