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Most Bang for Your Buck

All home owners like to add, change, update, and remodel their homes. Some remodels are out of necessity, others out of desire, but all are done hoping to add value to the home. However, some are disappointed to find that the dollars that were spent did not increase the value of the home at all. How do you know what projects will give you most the bang for your buck?

In a recent issue of Remodeler’s Magazine, the article “Cost vs. Value” stated that for northern Virginia homeowners, the national average cost-value ratio is up nearly 10%, with 15 projects improving between 10% and 28% compared with 2013. Though adding more square footage of living space produced a 78% return on these types of home improvement, other projects were even more valuable for the 2014 resale market.

The initial cost of replacement projects of doors, siding, and windows is balanced by a higher value at resale. The cost-value ratio is now higher than at any time since the peak year of 2005, which signals a return of confidence in the value of updating your home. The Washington, D.C. (northern Virginia) area was ranked in the top ten cities for the highest rate of return, with an average of approximately 85% overall for exterior remodeling projects.

The top eight home improvements with National Average Cost (NAC) and Return on Investment (ROI) in the northern Virginia, Arlington, Alexandria, Annandale, Vienna, Falls Church, Fairfax, Chantilly, Centreville, Reston, Herndon, and Springfield area were:

1. Steel Entry Door

NAC: $1,230

ROI:    101.8%

2. Adding a Wood Deck

NAC: $10,048

ROI:     80.5

3. Attic Conversion

NAC: $51,696

ROI:    77.2%

4. Garage Door Replacement

NAC: $1,595

ROI:     88.4

5. Fiber-Cement Siding

NAC: $14,014
ROI:     84.3%

6. Replacement Windows

NAC: $10,316 (Vinyl)    NAC: $11,341 (Wood)

ROI:     77.5%                  ROI:     78.8%

7. Vinyl Siding

NAC: $12,013(Vinyl)     NAC: $15,184 (Insulated Vinyl)

ROI:    80.7%                   ROI:     77.6%

8. Kitchen Update

NAC: $19,226 (includes new cabinet doors and drawer fronts, along with new appliances, countertop, and flooring)

We at Agent Knows Home understand that knowledge is power, and reading these numbers about our district will help you make a very educated decision on your next project. If you are unsure what updates make the most sense, feel free to contact me, Jeff Wu at 571-248-1110 or email me at [email protected] to discuss your needs, wants, and what decision will give you the most “Bang for your Buck’”.

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