BURNSVILLE, Minn. -- Remodeling Magazine is out with its annual list of projects that offer the best return on investment.
"Return on investment can mean two different things," said Todd Bjerstedt of McDonald Remodeling. "It can mean, 'how much does it cost to live there?' and then, 'how much am I going to get for the home after I've made these improvements?'"
The data in the Cost vs. Value Report compares the average cost for 35 popular remodeling projects with the value those projects retain at resale. The magazine lists national averages and the returns in nine regions. Minnesota is included in the West North Central Region.
There was a time when nearly every dollar you put into a home could be pulled back out. According to Remodeling Magazine, at the peak in 2005, nearly 87 percent of remodeling costs could be recouped. Although current returns are lower, some projects still offer a chance to recoup a majority of the investment.
According the magazine's new report, the top five projects for upscale homes are all exterior improvements. Fiber cement siding replacement is at the top of the list, offering a 67 percent return on investment.
Exterior fixes also place high on the list for projects at midrange homes. New siding will bring a 59 percent return on investment in the Midwest. You can expect to get almost 60 percent back on the cost to add a deck.
If you're thinking of investing inside, the kitchen, a bathroom or attic bedroom are good spots to put money.
An attic bedroom remodel on a midrange home offers a nearly 60 percent payback. Kitchen fixes give about a 55 percent return on investment on the same size home. The numbers are slightly lower for upscale projects.
"Kitchens are huge because the reality is that's where we live," Bjerstedt said. "So, if someone is going to buy a home and the kitchen is in bad shape, that's a big objection."
On the other end of the spectrum, sunrooms and home offices are the rooms offering lower returns on investment.
Visit the Remodeling Magazine website to see the full Cost vs. Value Report.
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