4 Remodeling Projects That May Pay Off

Jan 27, 2012

By SFLearn State Farm™ Employee

If you’re planning to remodel a home office and hoping to recoup your investment when you sell your home, you could be disappointed. According to the Remodeling Cost vs. Value Report 2011-2012 from Remodeling magazine you'll recover slightly less than 43 percent of your money for this project. But upgrade your exterior with fiber-cement siding and you might see a return of 78 percent in terms of increased home value.

For many homeowners, how an improvement affects a home's resale value is a critical factor in deciding whether the project goes forward. Here are four investments that paid off from this year's report:

  • Replacement projects: On average, replacing things like flooring, countertops, fixtures and cabinets returns 64 percent of the project costs upon sale, compared to large scale remodeling jobs, which return 57 percent. Replacements typically cost less and are appealing to buyers because they are important indicators of home maintenance.
  • New siding, windows and doors: These projects enhance curb appeal and have some of the biggest payoffs when you sell.
  • Remodeled attic space: Creating a bedroom in a previously unused area pays a 72.5 percent return on the investment, largely because the project adds living space without expanding a home's footprint.
  • Kitchen facelifts: These minor remodeling projects often include new cabinet doors, hardware, countertops and appliances—and typically return more than 72 percent of the investment.

    • One add-on that doesn't pay off well is a sunroom addition. While a pleasant sunroom may be your family's favorite relaxation spot, this project typically returns less than 46 percent of your investment.

    In addition to payback rates, the report cites other considerations for homeowners who are planning a home improvement. For example, recognize that adding a room may provide you with more space but may result in increased household heating and cooling bills. Enlarging a bathroom at the expense of a bedroom may make perfect sense for your family, but be seen as a lost room by a buyer. Elaborate remodeling projects that are out of sync with the value of the surrounding homes may also be a negative in the eyes of potential buyers.

    Was this article helpful?Yes ()  |  No ()

    Tags

    Want to participate in online communities? Read State Farm's Community Guidelines first.

    This Learning Center provides general information about insurance and financial services products, as well as other general content, and is provided for educational purposes only. Read More

    Some content on this site includes content, information, or opinions provided by third parties or other sources. Content, information or opinions provided by third parties or other sources do not necessarily represent the opinions of State Farm and should not be interpreted as reflecting State Farm's position regarding any insurance product or the manner by which State Farm handles claims.

    State Farm does not warrant any content, information, or opinions of any third party or other source. Articles or content about insurance or financial services or other general content do not necessarily represent products or services offered by State Farm. This Learning Center may link to or interface with other Internet sites that State Farm does not maintain or control. State Farm does not sponsor or endorse those sites or the content, information, materials, or information on those sites. State Farm is not responsible for anything contained on such sites and makes no warranties or representations about the information, opinions, contents, products, or services offered on such sites. Not all of the products or services discussed on this site are available through State Farm. The information on this site is not a contract, binder, or agreement to extend insurance coverage. Any coverage descriptions provided on this site are general descriptions and are not a statement of contract. All applications are subject to underwriting approval. Coverages and availability may vary by state or province.

    Life Insurance and Annuities Issued By:
    State Farm Life Insurance Company (Not Licensed in MA, NY, or WI)
    State Farm Life and Accident Assurance Company (Licensed in NY and WI)
    Bloomington, IL

    Questions?

    Find a local agent below, or call us anytime at
    1-800-447-4930

    Get a Rate Quote Now

    Facebook Activity