MERRILLVILLE, IN …
One of the central motivations of taking on a large remodel or home improvement project is to increase the resale value of your home. Yet in a soft real estate market, is that still the case? If so, which home improvement projects actually “pay for themselves” or increase the value of your home the most? DirectBuy, the leading home improvement and furnishings club with direct insider prices, offers some insights into the home improvement projects that deliver the most return on investment (ROI).
“You’d think because of the soft real estate market that the likelihood of homeowners taking on remodels would go down. It’s actually quite the opposite. According to the Spring 2009 RemodelorMove Remodeling Sentiment Report, a semi-annual survey of 5,000 U.S homeowners,68 percent of homeowners will remodel in 2009,” said Sara Shragal, of DirectBuy.
So which home improvements projects have the best chance of recouping the homeowner’s investment? According to Remodeling magazine’s 2008 report, the home improvement projects you’re most likely to recover construction costs in a resale are:
● Minor kitchen remodel (e.g. new cabinets) – 79.5% cost recouped
● Major kitchen remodel – 76% recouped
● Deck addition (wood)– 81.8% cost recouped
● Bathroom remodel – 78.3% cost recouped
● Siding replacement (vinyl) – 80.7% cost recouped
● Window replacement (vinyl) – 79.5% cost recouped
● Attic to bedroom remodel – 73.8% cost recouped
These numbers reflect a national average, with some home improvement projects coming in higher or lower in different parts of the country (e.g. in Chicago, siding replacement will recoup more than the national average; most likely the higher value of siding in a colder climate).
“What’s interesting about this report is even though home prices have fallen about seven percent nationally, the decline in value of remodeling projects has been under four percent. So, besides getting to enjoy the benefits of your remodel project while you’re living in your home, you are still getting good value comparatively,” said Shragal.
By enabling its members to buy directly from manufacturers at wholesale prices, DirectBuy gives consumers an even greater chance to recoup construction costs at the time of sale. Taking it one step further, DirectBuy also provides members with connections to contractors providing installation services, generally at a discounted rate between five and 20 percent, to improve even further the likelihood of recovering construction costs.
For more than 37 years, DirectBuy has been showing thousands of consumers unparalleled ways to save as they shop for virtually everything for in and around their homes – from furnishings, home improvement and flooring, to entertainment and outdoor products, accessories and much, much more. With more than 160 locations in North America, DirectBuy offers its members access to approximately 700 brand-name manufacturers and their authorized suppliers in the US, and more than 500 brand-name manufacturers and authorized suppliers in Canada.