The two main reasons home-owners invest in remodeling are 1) to increase the value of the home and 2) to improve their enjoyment and comfort in the home. According to the third annual "Remodeling Impact Report" from the National Association of the Remodeling Industry (NARI) and National Association of REALTORS® a new roof is still the best investment for both recouping cost and home enjoyment.
The report looks at 20 different remodeling projects (12 interior, 8 exterior) and ranks them by estimated cost, cost recouped at time of sale, and the happiness of the home-owner with the project. One thing it makes clear about remodeling projects is those with the highest appeal to home-owners can have a very low cost recovery figure.
Here are the top five exterior projects for cost recovery:
New roofing not only topped the list of exterior projects for cost recovery, it also beat all interior projects for cost recouped at time of sale. For 77% of those who got new roofing the main reason was to upgrade and replace worn-out surfaces and materials. Of the eight exterior projects examined, the one with the lowest cost recover is new wood windows, with a recouped value at only 57%.
Of the top five interior remodeling projects for cost recover, flooring took the first two slots:
Interior projects prove more likely than exterior ones to have a high owner happiness score and a low recoup value. For example, a new bathroom, or a bathroom renovation, recoups only 50 percent of its cost. Obvious improvements, such as a complete kitchen renovation or the conversion of a basement into living space, deliver recoup percentages in the low sixties.
Click HERE to see the full report.