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2007 Remodeling Best Home Renovations List

Each year, Remodeling Magazine works hard to produce a Cost vs. Value Report [3] in which they give you a good idea of the best home renovations from the perspective of resale value. In other words, if you had $10,000 to spend on a remodeling project and wanted the best financial return for your dollar, this list would give you a good idea of where you should spend it.

Remodeling takes it one step further and gives you the ROI based also on your geographic area because different areas enjoy different trends, styles, and comforts. The best example has to be a pool. A pool’s value is significantly higher in temperate climates like the Mid-Atlantic and South Atlantic and less valuable in areas that are cooler like the New England states. For the sake of simplicity, I’ll just compare national figures because that’s what they used to do in their surveys.

It’s amazing what happens in one year.

Changes since 2006

In the 2006 Best Home Renovations List [4], you had nearly everything on the list come in at above 80% return. Of the eighteen listed renovations, half gave a return of over 90% (two were profitable!). This year? Good luck finding anything with a return above 90%… the highest is a Wood Deck Addition at 85.4% (last year it was 90.3%). Here’s the 2005 Best Value Home Renovations Revisited [5] post for further comparison from the year before.

Top 5 Best Value Renovations

Nationally, the top five were the wood deck addition (85.4%), siding replacement (83.2%), minor kitchen remodel (83%), and wood (81.2%) and vinyl (79.3%) window replacement. As you can see, former #1 minor kitchen remodel was third.

We recently replaced our roof because it was over 25 years old and because it had begun to leak. The roof replacement in the South Atlantic region (apparently Baltimore, MD is in the South Atlantic) had an estimated cost recoupment of 72% versus 67.4% nationally. Does that really affect our decision? We replaced it because it was leaking!

I don’t know many people doing home renovations these days with the housing market and the economy the way it is, which could explain the slow decline in ROI of renovations but it’s always good to keep these sorts of lists around if you have some cash burning a hole in your pocket. 🙂

(Photo: wili [6])