In our digital world, we’re all accustomed to silly three-letter abbreviations such as LOL, OMG, and BFF. But when customers throughout the Cincinnati area contact us to talk about a possible repair or remodeling project for their home, they often have three very different letters in mind: ROI. They want to know what kind of “return on investment” they can expect if they spend their hard-earned money on a home repair or remodel. Is their investment in the project going to provide a positive return on their home’s value?
In Remodeling Magazine’s annual Cost vs. Value report, homeowners can find valuable data about the costs of standard home remodeling projects locally, regionally, and nationally. But beyond the project costs, the report also helps homeowners estimate how the project will affect the resale value of their home in their specific area.
It’s been said that all politics are local. The same is true for home values, including the ROI on home remodeling projects. If you live in Cincinnati, you won’t care how a similar remodel would affect a home’s value in Boise, Idaho. You want to know how investing YOUR money will affect the value of YOUR home in YOUR area. This report helps homeowners evaluate exactly that.
Exterior Projects FTW
(“For the win!” Another three-letter abbreviation, LOL.)
Even a cursory glance at this annual report quickly reveals a pattern.
“True to form, this year’s report confirms a consistent truth that has been revealed on every report for the last 30 years: Exterior replacement projects typically provide a higher return on investment than interior discretionary remodels at the time of house sale.”
-Remodeling Magazine
When buyers are searching for a home, they begin on the internet. As they scroll realtor sites, the first things they see are exterior pictures of available homes in their area. If the exterior picture of a house doesn’t grab their attention, they are likely to keep right on scrolling. The interior may be amazing, but they’ll probably never see it.
And then, when buyers physically show up to evaluate a house, the exterior can be a deal-maker or deal-breaker.
“If their first impression is a run-down exterior, they tend to enter the property wary and reluctant to spend large on the property. If, on the other hand, the home looks well taken care of, they enter with a more positive view from the outset.”
–Remodeling Magazine
Long story short, if you’re looking for projects to provide the biggest ROI when it comes to your home’s resale value, the exterior is where it’s at.
Two Exterior Projects That Provide the Greatest ROI
Manufactured Stone Veneer
Approximate cost recouped in the Cincinnati area: 94%
Of the 23 remodeling projects evaluated in this year’s report, this one offered the highest percentage of recouped cost: a whopping 94%!
This project involves removing vinyl siding from the bottom third of the street-facing side of the home and replacing it with adhered manufactured stone veneer.
More homes are wrapped in vinyl siding than any other material, so buyers may subconsciously begin to see vinyl-sided homes as cookie-cutters. They can fall into a, “When you’ve seen one, you’ve seen ‘em all,” mentality. That’s not true, of course, but a buyer’s perception becomes their reality.
A manufactured stone veneer is certain to set your home apart from all the typical vinyl-sided houses. Using actual stone would cost a fortune, but this material is a mixture of cement, natural aggregates, and colors. It is much lighter and far more cost-effective than real stone, but the veneer looks strikingly similar to the real thing.
This stone veneer exponentially increases the visual appeal of the most forward-facing part of your home. It creates a more upscale vibe than vinyl siding alone, and it provides quite a return on your home’s resale value.
As you consider this remodeling project, one of the most important factors is quality installation. Choosing the right material makes little difference if it is improperly installed. The craftsmen of ProMaster are experts at any type of concrete or masonry work, including the installation of manufactured stone veneer. Given the potential return on this investment, you don’t want to trust it to anyone but the best!
Vinyl Siding Replacement
Approximate cost recouped in the Cincinnati area: 73.4%
We’re not down on vinyl siding. Not at all! On the contrary, it is the most popular siding material for good reason. It is a flexible, durable material with a relatively low price point and little required maintenance.
However, that doesn’t mean it is indestructible. Wind and hailstorms can damage vinyl siding. So can a grill that is accidentally pushed too close to the house or an errant chip shot when you’re practicing your golf game in the backyard.
Damaged vinyl siding is a major turn-off for prospective home buyers. It suggests that the entire house may be in disrepair, even if that’s not the case at all.
While Remodeling Magazine lists vinyl siding replacement as a top ROI home remodel, you might not need a full replacement. Siding repairs are among the most common projects completed by our craftsmen. Homeowners often mistakenly believe they need to replace all of their siding when, in reality, the damaged area can be repaired and restored to like-new condition. We do these repairs all the time, to the delight of countless homeowners who thought they needed to completely re-side their homes. And it’s not just vinyl. We can also repair aluminum siding, making it look as good as new.
The Two Most Valuable Interior Remodels
As noted above, the highest ROI for remodeling projects typically involves the exterior of the home. There are two notable exceptions, though. Even in this tough housing market, these two interior remodeling projects still offer a high percentage of recouped costs.
These projects include what the Trulia real estate blog calls the “two rooms that really sell homes.” Those rooms are the kitchen and the master bathroom. As Trulia puts it, “These are the interior spaces where the most value can be added during a sale.”
Minor Kitchen Remodel
Approximate cost recouped in the Cincinnati area: 78.9%
Once prospective buyers step inside a home, the kitchen is often the most important room in shaping their overall opinion of the home. A well-appointed, modern kitchen can be a powerful selling point.
Nearly 79% of the cost of a minor kitchen remodeling project can be recouped when selling your Cincinnati area home. This type of remodel involves replacing the range and refrigerator with new energy-efficient models. New flooring and laminate countertops are also installed, along with a new sink and faucet. New cabinet and drawer fronts are added. And, of course, the remodel is capped off with freshly painted walls, trim, and ceiling.
It’s important to note that more elaborate kitchen remodels don’t offer the same ROI. The recouped cost of an upscale major kitchen remodel drops to a paltry 29.7%. Even a major remodel that is considered more mid-range only recoups about 37.1% of the project’s cost.
“That’s because a “dream kitchen”…conceived by a former owner may not include the finishes and selections that all buyers will value highly. There are vast differences in aesthetic tastes; one person’s elegant new kitchen…will not be viewed by all prospective buyers equally.”
–Remodeling Magazine
If you’re expecting to stay in your home for years and you have a dream kitchen in mind, then go for it! But if you’re looking strictly at the cost/value analysis, a more modest update yields the best return by far.
Since the kitchen really is the most important room in the house, you’ll want to give careful thought to who does the remodeling work. ProMaster’s craftsmen have updated kitchens throughout Greater Cincinnati. You won’t need multiple contractors for the electrical, plumbing, flooring, and cabinetry work. Instead, all you need is the highly skilled, multi-disciplinary craftsmen of ProMaster.
Mid-Range Bathroom Remodel
Approximate cost recouped in the Cincinnati area: 62.8%
The other interior remodel that has a relatively high percentage of recouped value is the master bathroom. A mid-range bathroom model includes all-new fixtures, such as a single-lever temperature and pressure-balanced shower control, a standard white toilet, and a solid-surface counter with an integral sink. It also includes an updated tub, a recessed medicine cabinet with a light, ceramic tile floor, and vinyl wallpaper.
Like a kitchen remodel, the ROI actually decreases with more elaborate remodeling projects. Homeowners may only recoup 35% of the money invested in a more upscale bathroom remodel. Once again, in the cost/value analysis, less is often more.
The Home Repair Heroes at ProMaster can handle any bathroom remodel, regardless of its scope. Our courteous, friendly craftsmen will discuss all the options with you so you can make the most informed decision about your bathroom remodel. We use only the highest quality materials and craftsmanship that other companies simply can’t match. We’re a BBB accredited business with more than 15 years of experience serving thousands of satisfied customers throughout Greater Cincinnati and Northern Kentucky.
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A porch ceiling was damaged by a tree limb. I am unable to enter a large closet above, since the floor may be unreliable. I simply need to have the porch ceiling propped up so that I can have steamer trunks, etc. removed from the closet.
I live in PA and can only visit the house for a day or two from November 10 to 15. I need to count on scheduling for a specific date.
Thanks for your attention to this request.
Sincerely,
Jean Ager
Hi Jean,
Apologies, but we only service the greater Cincinnati area so we would not be able to assist with this project!