Remodeling Magazine’s 2018 Cost vs. Value Report
Tuesday, April 24th, 2018 by John Wagenknecht
Remodeling Magazine’s 2018 Cost vs. Value report came out last week with some important information to consider if you are thinking about remodeling your home this year. Each year, the magazine releases a report discussing which home improvement projects have the highest return value on the investment.
This year, the report has roof replacement projects at 68%, windows at 74%, and siding replacement all the way up at a 77% return on investment rate. The return on investment rate refers to the percentage of your projects purchase price that you are able to recoup through the projects resale value when it is time to sell your home. For example, if siding replacements have an 80% return rate, and you spent $10,000 re-siding your home, when it comes time to sell your home, re-siding your home will have added $8,000 worth of re-sale value to the home. New England is right in the middle of the pack when it comes to return on investment value compared to other regions of the country, but roofing, siding, and windows all rank in the top half of all home improvement projects when it comes to return on investment. In fact, when it comes to return on investment on roofing, windows and siding, A&A Services areas of expertise, New England is slightly above the national averages at 72% return on roofing, 75% on vinyl windows, and all the way up to 80% when it comes to siding.
This return on investment value is most important to people who are looking to re-model and sell their home in the near future. Taking on a large home improvement project up to a few years before selling your home can be a great idea for a couple of different reasons. The first reason is that you as the current occupant will directly benefit from the improvements you make. For example, if the siding on your home is worn and damaged, replacing it could properly insulate your home and end up saving you money on your energy bill before you even sell the home. Between the 80% resale value and the money that you will save on your heating bills from repairing the siding, the siding could completely pay for itself by the time you move. And not only will you have recouped the cost of the repairs, you will also have enjoyed the aesthetic benefits of the siding as well. Roofing and windows can yield the same results. Repairing that damaged roof could be protecting your home from a rot issue that would cost you far more to repair than simply replacing the shingles. As for the windows, if they are out of date, or not properly insulated, you could be losing money sharing your heat with the great outdoors every winter. Simply replacing and re-sealing your windows could save you hundreds on your heating bill before you even think about the resale value of repairing them. On all three projects, returns of close to 75% are common.
If you could invest in your home improvement projects knowing that if you decided to sell your home within the next few years, you would receive 75% of your money back for the repairs, why wouldn’t you want to tackle the project? You get to enjoy the aesthetic benefits of the repairs in the meantime, and you may even save yourself some money on your energy bill! Now is as good a time as ever, call A&A Services at (978) 741-0424 to come out to your home and give you a free estimate!
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