IN Brentwood-Baldwin-Whitehall Summer 2016 | Page 26

INDUSTRY INSIGHT

INSURANCE INFORMATION

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4 Remodeling Projects That May Pay Off
If you’re planning to remodel a home office and
hoping to recoup your investment when you sell
your home, you could be disappointed. According
to the Remodeling Cost vs. Value Report 20112012 from Remodeling Magazine, you’ll recover
slightly less than 43 percent of your money for
this project. But upgrade your exterior with fibercement siding and you might see a return of 78
percent in terms of increased home value.
For many homeowners, how an improvement
affects a home’s resale value is a critical factor in
deciding whether the project goes forward. Here
are four investments that paid off from this year’s
report:

• Replacement projects — On average,
replacing things like flooring,
countertops, fixtures and cabinets returns
64 percent of the project cost upon sale,
compared to large-scale remodeling

jobs, which return 57 percent. Replacements typically cost less
and are appealing to buyers because they are important
indicators of home maintenance.

• New siding, windows and doors — These projects enhance

curb appeal and have some of the biggest payoffs when you
sell.

• Remodeled attic space — Creating a bedroom in a previously
unused area pays a 72.5 percent return on the investment,
largely because the project adds living space without
expanding a home’s footprint.

• Kitchen facelifts — These minor remodeling projects often

include new cabinet doors, hardware, countertops and

appliances and typically return more than 72 percent of the
investment.
One add-on that doesn’t pay off well is a sunroom addition. While
a pleasant sunroom may be your family’s favorite relaxation spot, this
project typically returns less than 46 percent of your investment.
In addition to payback rates, the report cites other considerations
for homeowners who are planning a home improvement. For
example, recognize that adding a room may provide you with more
space but may result in increased household heating and cooling bills.
Enlarging a bathroom at the expense of a bedroom may make perfect
sense for your family, but could be seen as a lost room by a buyer.
Elaborate remodeling projects that are out of sync with the value of
the surrounding homes may also be a negative in the eyes of potential
buyers.

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