Does home improvement really payoff?

It’s that time of year.   You’ve just taken down the holiday decorations and the house looks a little plain.  You begin to ponder that kitchen remodeling project that you have discussed with your significant other for the past couple years.  And then you wonder whether or not that would be the best use of your home investment dollars.

You’re not alone in your curiosity regarding home remodeling projects and the subsequent value that they may or may not add to the re-sale value of your home.  That’s why Remodeling magazine in cooperation with REALTOR® magazine produces an annual report describing the average cost recouped for 30 of the most popular home improvement projects in nine regions of the country.  This year’s study included 79 markets.

The East North Central Region which includes Michigan is not unlike the rest of the nation in that exterior projects dominate the list of highest payback improvement projects.  The number one project from the standpoint of recouping your investment dollars is siding replacement (with a 79.3% payback for fiber cement siding).  The next three projects in order are very close in their percentage of investment recouped, with minor kitchen remodels coming in at 69.1%, a wood deck seeing a 68.9% return, and new vinyl windows yielding 68.5%.

If you would like more information on how this study was conducted or city-by-city results please click through to http://www.realtor.org/rmohome_and_design/articles/2008/0812_costvsvalue_2008 for the detailed report.