What are the Most Cost Effective Remodeling Projects?

Exterior remodeling projects return the most money as a percentage of cost, according to the 2008 Remodeling Cost vs. Value Report. On a national level, wood deck additions and all types of siding replacements -- upscale fiber cement, mid range vinyl, and upscale foam-backed vinyl -- returned more than 80 percent of project costs upon resale.
The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 mid range and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country.The report is produced by Hanley Wood, LLC in cooperation with "REALTOR®" magazine.
In addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs. A mid range bathroom remodel was estimated to return 74.4 percent on resale, comparable to a mid range attic-to-bedroom conversion, at 73.6 percent of costs recouped, and a mid range basement remodel, at 72.7 percent of costs recouped. As in last year's report, the least profitable remodeling projects in terms of resale value were home office remodels, sunroom additions, and back-up power generators, returning only 54.4 percent, 56.6 percent, and 57.1 percent, respectively, of project costs.