Remodeling ROI – Cost vs Value Report 2009-10

Clients often contact me about their potential ROI (Return on Investment) for various remodeling projects. While I can help with a sense of what appeals to buyers and what will help sell a home more quickly, Remodeling magazine's Cost vs Value report compiled each year in cooperation with REALTOR magazine gives much more specific ROI data.

Comparing this year's data to last year in the Minneapolis-St. Paul area shows average project costs went up about 2% and average return about the same as last year, with a negligible 0.6% increase.

The ten projects showing the highest rate of return also all showed increased rates of return compared to last year. Following are the top 33 projects with average job cost and estimated percent of cost recouped at time of sale in the Minneapolis-St. Paul metropolitan area, ranked by ROI (Rate of Return).

Highest ROI are for fiber cement siding replacement and steel entry door replacement…both with a rate of return over 90%. Lowest rate of return is for a home office remodel, with only a 44.9% average ROI.

Sometimes the real value is in your personal use and enjoyment while living there…and a quicker sale when it comes time to sell!

MINNEAPOLIS-ST. PAUL Remodeling Cost vs Value 2009-2010

1. UPSCALE siding replacement (fiber cement) – $14,019 – 94.2%
2. Entry door replacement (steel) – $1,476 – 92.8%
3. Minor kitchen remodel – $23,757 – 83.0%
4. Siding replacement (vinyl) – $13,467 – 80.4%
5. Deck addition (wood) – $17,285 – 79.2%
6. UPSCALE siding replacement (foam-backed vinyl) – $16,192 – 79.1%
7. Deck addition (composite) – $12,818 – 76.9%
8. Window replacement (wood) – $14,699 – 75.1%
9. Attic bedroom – $64,520 – 73.9%
10. UPSCALE window replacement (wood) – $21,635 – 70.4%
11. UPSCALE window replacement (vinyl) – $17,733 – 69.9%
12. Two-story addition – $195,374 – 68.9%
13. Window replacement (vinyl) – $13,802 – 67.8%
14. Major kitchen remodel – $65,955 – 67.6%
15. Master suite addition – $133,156 – 65.4%
16. UPSCALE grand entrance – $9,046 – 64.5%
17. Basement remodel – $78,682 – 63.3%
18. UPSCALE deck addition (composite) – $41,822 – 63.0%
19. Family room addition – $107,375 – 62.9%
20. UPSCALE major kitchen remodel – $123, 396 – 62.0%
21. Entry door replacement (fiberglass) – $4,065 – 61.5%
22. UPSCALE master suite addition – $269,730 – 56.5%
23. Bathroom remodel – $19,491 – 56.1%
24. Garage addition – $73,574 – 55.0%
25. UPSCALE bathroom remodel – $61,136 – 54.3%
26. Sunroom addition – $87,628 – 53.2%
27. UPSCALE garage addition – $107,479 – 52.2%
28. Bathroom addition – $49,770 – 50.6%
29. UPSCALE bathroom addition – $92,380 – 47.7%
30. Roofing replacement – $29,132 – 47.7%
31. UPSCALE roofing replacement – $55,982 – 46.9%
32. Back-up power generator – $17,242 – 45.3%
33. Home office remodel – $32,830 – 44.9%

Data copyright 2009 Hanley Wood, LLC. Reproduced by permission. Complete data for different areas from the Remodeling 2009-10 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

Sharlene Hensrud, RE/MAX Results – Email – HomesMSP.com

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