By Roger Diez
Now is an excellent time to tackle that home improvement project you have been considering. Due to the slow economy, cost of materials and labor are down from just two years ago. But if you have several projects under consideration, you might want to concentrate on those that will give you the best return on investment (ROI).
Remodeling Costs and Average Returns
Remodeling Magazine’s most recent survey of remodeling costs indicates that projects that enhance the exterior of your home are generally less costly and yield a greater return on investment than interior improvements. Projects like an outside deck addition, window replacement, and vinyl siding cost on average between $10,000 and $15,000, and return 76 percent to 81 percent of their cost on resale. Higher cost projects typically yield a smaller return. A master suite addition, second story addition, or major kitchen remodel have an average cost of over $100,000 and generally return between between 61 percent and 70 percent of their cost.
Regional Return on Investment Differences: Your Return May Vary
The numbers quoted above are national averages, but there are significant differences in costs and returns depending on where you live. Here is what you can expect in various areas of the country.
New England: High Remodeling Costs, Lower Returns
The highest cost of remodeling in the country is in New England, leading to a somewhat lower return on investment in this area of the country. Remodeling costs can range from 2 percent to 10 percent above the national average, but return on investment can be 2 percent to 10 percent lower than the national average. Homeowners in this region may achieve the best payback on remodeling costs by focusing on high yield exterior home improvement projects.
Southeast: Lowest Home Improvement Costs, Good Value
Remodeling costs in the southeast are the lowest in the country, and the return on investment is significantly higher for some projects. Your deck addition may cost almost $1,700 dollars less than the national average, and your return may be
