Exterior Remodeling Projects: How they save cash when it comes to selling homes

While perusing through some of the recently published articles on Realtor.org, I came across Leanne Jernigan’s post regarding remodeled or refurbished properties and how some specific exterior remodeling projects kicked back 80 percent of their costs upon resale.  Particularly helpful to first time home buyers, owners and realtors specializing in selling homes, these stats compiled by REALTOR Magazine show that certain home improvement projects, such as the wooden deck additions to your porch or the sliding doors that open up to your backyard, are worthwhile investments that enhance your property’s curb appeal without costing you your mortgage.  Jernigan includes quotes from NAR President Vicki Cox Golder regarding these numbers: “…this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression… With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.”

Referring to the Cost vs. Value report conducted by REALTOR Magazine and Hanley Wood, LLC, a media company specializing in the housing and construction industry, Jernigan points out that certain home improvement projects are more effective for saving cash in that a hefty amount of their costs are returned when the property is put up for sale.  Of the various additions, remodels and replacements taken into account for this report, it was found that the home improvement project that returned 83.1 percent of the remodeling costs was the attic-bedroom conversion, followed by a standard kitchen remodeling with 78.3 percent of the costs recouped.

Other interesting statistics echoed by Jernigan and supplied by the REALTOR article, which also coincide with trends in real estate market analysis, are geographically focused. First time home buyers and owners in the states of Alaska, California, Hawaii, Oregon and Washington topped the list of those who recouped the bulk of their remodeling costs upon reselling their property, with those selling homes in Arkansas, Louisiana, Oklahoma and Texas falling right behind them.  First time home owners in New England, Illinois, Indiana, Michigan and Ohio may want to reconsider replacing their shingles or installing a hot tub on the back patio: These states ranked among the lowest of those returning the percentage of home improvement costs.

Whether you’re a first time home owner or a Realtor immersed in the residential market, Jernigan’s and REALTOR’s articles regarding the effects exterior and interior remodeling jobs have on selling homes are eye-openers.  Curb appeal plays an important role in real estate market analysis, and it’s interesting to note how particular investments that give homes a facelift can add more value to a property than others.

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Mark W. Martin is President of 2M Realty, a Texas Real Estate Broker and Houston Realtor. He develops land in north Houston and is active in commercial and residential real estate. To learn more about the Houston real estate market or Houston homes for sale please visit our website.