How To Get the Best Return on Investment with Your Next Home Improvement Project

RENOVATION 83 ROI TURN AN ATTIC INTO Α BEDROOM 80.7~ % Most % homeowners have a long wish list of home SIDING REPLACEMENTS renovations or WINDOW REPLACEMENT10 additions. Here's how 50% 40% specific MASTER SUITE ADDITION® renovation projects affect home resale value? НОМE OFFICE REMODEL® 91% 85% %% NEW FIREPLACE? KITCHEN REMODEL³ 54.7 48.5% 101.8 SUNROOM ADDITION HE 田 UPSCALE GARAGE ADDITIONº NEW STEEL FRONT DOOR' HIGHEST ROI HOME RENOVATION PROJECTS Entry Door Replacement' Remodeling Magazine's Cost vs. Value 2015 Index has once again shown that the simple act of replacing the front door can make a huge impact on the sale value of a home. TIP: make sure the door matches the style of the home and doesn't go too grand, otherwise the ROI will decrease. REMODEL.NET's NATIONAL AVERAGE ROI BASED ON TYPE OF DOOR REPLACEMENT 2015 101.8% 72.0% 67.6% GRAND ENTRANCE PloFIBERGLASS STEEL DOOR FIBERGLASS DOOR 123% 112% 92% 91% 114% 98% 86% 89% 86% REGION-BY-REGION ROI FOR STEEL DOOR INSTALLATION IN 2015 Mountain East-North Central East-South Central West-North Central West-South Central Mid- New Pacific South Atlantic Atlantic England Installing a | According to a 2012 survey, buyers rank fireplaces as one of New Fireplace? the three amenities they'd most like in their homes. About 91 percent of the cost of installing an "excellent" quality gas fireplace can be recouped when selling a home, according to Marshall & Swift's Appraiser's Handbook. NEW SINGLE-FAMILY HOUSES COMPLETED: BUILT FOR SALE WITH ONE OR MORE FIREPLACES 71% 62% 60% 54% 43% 1973 1983 1993 2003 2013 Kitehen The kitchen is the room that can make or break the sale of a home. An upgraded, attractive kitchen can make your home irresistible. Projects Remode3 budgeted at 6-10 percent of the total home value see the strongest return. WHY HOMEOWNERS REMODEL THE KITCHEN 69 26 15 15 10 MORE EFFICIENT LAYOUT BETTER OTHER OUT OF DATE MORE STORAGE KEY ELEMENT ACCESSIBILITY IS BROKEN 74% COUNTERTOPS MOST POPULAR ITEMS REPLACED IN A KITCHEN REMODEL 70% WALLPAPER/PAINT 67% CABINETRY 64% FLOORING Turn an On average, creating an attic bedroom will increase your home value by $39,908. When transforming an attic into a bedroom, Attic Into follow the "rule of 7s": Enforcement varies, but codes typically say that at a Bedroom least half of a finished attic must be at least 7 feet high, and that this area must be a minimum of 7 feet wide and 70 square feet. STRENGTHEN THE FLOOR, INSULATE AND FINISH AVERAGE COSTS OF KEY ELEMENTS OF AN ATTIC CONVERSION ADDING A DORMER (S = $5,000 CREATING STAIR ACCESS ADDING A BATHROOM Siding Replacement This project calls for replacing 1,250 square feet of existing siding with new siding (vinyl, fiber cement or foam-backed vinyl), including factory trim at all openings and corners. ROI NATIONAL AVERAGE BASED ON TYPE OF SIDING 2015 80.7% FIBER CEMENT SIDING T1.6% FOAM- BACKED VINYL VINYL SIDING 86% 72% 98% 94% 81% 81% 71% 79% 75% REGION-BY-REGION ROI FOR INSTALLING FIBER CEMENT SIDING IN 2015 East-North Central West-South Central East-South Pacific Mid- Atlantic Mountain New South Atlantic West-North Central Central England WORST ROI HOME RENOVATION PROJECTS Master Suite Since their boom in the 1980's, master suite additions are typically large, expensive projects, hence their low return. In a typical home today, the Additions average master suite takes up 12% of the home's overall square footage. LEAST DESIRED MOST AND LEAST DESIRED FEATURE A WALK-IN A WHIRLPOOL BATH FOR THE MASTER BEDROOM IN A NEW HOME/ CLOSET IN THE MASTER BEDROOM NEW BUILD 2014 a staple of home building for more than 20 years considered a waste of valuable square footage MOST DESIRED The second least desired feature was adding two-story volume for the foyer or family The second most desired 自 : feature was energy efficient windows. room. Sunroom Also known as Florida rooms, sun parlors and solariums, sunroom additions bring the outdoors inside-but without the bugs and bad Addition' weather. Despite their informal, indoor-outdoor feel, sunroom additions are a costly undertaking. Sunrooms need a foundation, walls and a roof, just like any other addition-and they need numerous windows, which can ratchet up the costs. REGION-BY-REGION ROI FOR THE ADDITION OF A SUNROOM IN IN 2015 50% 57% 53% 47% 47% 44% 41% 44% 42% East-North Central East-South Central Mid- Atlantic t-North Central Mountain West-South Central New Pacific England South Atlantic Home Office In 2010, an American Insititute of Architects survey revealed Remodel 8 that a home office space was the most popular special function room requested in new homes or additions. Converting a spare bedroom into a home office by removing the closet and adding built-in storage might sound like a good idea, but the ROI is low. These days, a home office consists of a multiple-choice combination of wireless laptops, smartphones, PDAS and touch-screen tablets. This freedom allows homeowners to work from anywhere-a home patio or a favorite restaurant to a park bench. ONLY ABOUT U.S. WORKERS 2% OF (excluding self-employed &volunteers) CONSIDER HOME THEIR PRIMARY WORKPLACE. WHAT WORKERS DO WHEN THEY WORK FROM HOME: 43 35 28 26 24 20 Percent is based on a survey of ΤΑΚΕ Α PLAY A VIDEO GAME WATCH American office workers by Wakefield Research. COMPLETE CHORES COOK DINNER HAVING A DRINK T.V. NAP Upscale Remodeling Magazine estimates $82,311 for this project, Garage Addition which includes building (from foundation to roof) a large, detached two-car garage that's heated, cooled and completely finished inside-down to the molding around windows and doors. For that price it would be organized with floor to ceiling built-in shelves, cupboards and workbench areas. An upscale garage is also fitted out with high-end lighting, and the floor is treated with a stain-resistant epoxy. The ROI for a mid-range version is actually 10% higher. ROI NATIONAL AVERAGE BASED ON TYPE OF GARAGE IN 2015 54.1% 64.8% UPSCALE GARAGE ADDITION MID-RANGE GARAGE ADDITION REGION-BY-REGION ROI FOR AN UPSCALE GARAGE ADDITION IN 2015 64% 59% 49% 55% | 46% 51% 54% 55% 48% East-North Central East-South Central Mid- Atlantic West-South Central Mountain New Pacific South Atlantic West-North England Central Window Replacementio Windows that are over 15 years old are linked to higher heating bills in the winter and cooling bills in the summer. Angie's List has found that the average ROI of new windows is 77%, however their calculations do not account for the installation cost, or on the other hand, the energy savings. As a rule of thumb, these costs offset over around 10 years. $501 $258 $372 $353 $401 $294 REGION-BY- REGION ANNUAL ENERGY SAVINGS FOR DOUBLE-PANE WINDOW UPGRADES $195 $213 $273 $146 $313 SOURCES: Remodeling Magazine's Cost vs. Value 2015 Index www.houselogic.com/home-advice/other-rooms/sunroom-additionreturn-investment/ 1. Remodeling Magazine's Cost vs. Value 2015 Index 2. Marshall & Swifts Appraisers Handbook (2012) www.census.gov/construction/chars/completed.html www.angieslist.com/articles/5-worst-home-improvements-selling-home.htm www.aia.org/practicing/aiab085952 abcnews.go.com/Business/top-worst-home-fixes-money/story?id=20074401 www.bls.gov/opub/mlr/2010/12/art2full.pdf www.bloomberg.com/2012-06-25/what-people-really-do-when-theyre-working-from-home 3. www.angieslist.com/articles/5-worst-home-improvements-selling-home.htm Kitchen Remodeling Survey Reveals Homeonwer Preferences - MasterBrand Cabinets, Inc. 2012 granitegalleryinc.com/5-tips-to-boost-the-resale-price-of-your-home-with-granite/ 4. 9. Remodeling Magazine's Cost vs. Value 2015 Index www.angieslist.com/articles/5-worst-home-improvements-selling-home.htm contractorquotes.us/best-remodeling-home-improvement-ideas-increase-home-value/ www.thisoldhouse.com/toh/photos/o,20533380_21062295,00.html time.com/money/2794637/renovate-your-home-5-smart-fixes www.angieslist.com/articles/5-worst-home-improvements-selling-home.htm www.energystar.gov/ia/partners/publications/pubdocs/HeatingCoolingGuide%20FINAL_9-4-09.pdf www.energystar.gov/products/building_products/residential_windows_doors_and_skylights/benefits pressroom.pella.com/features/PRL12033InfographicEnergyEff.pdf 10. 5. Remodeling Magazine's Cost vs. Value 2015 Index www.nahb.org www.angieslist.com/articles/5-worst-home-improvements-selling-home.htm www.wsj.com/articles/how-the-master-bedroom-took-over-the-house-1431013022 www.realtor.org/reports/remodeling-impact www.louisvillehomesblog.com/interior-design/least-desirable-home-features-for-2015/ 6. 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