Cost vs. Value

Remodeling Magazine publishes an annual report that compares construction costs for common remodeling projects with the value they add at resale in 60 U.S. housing markets. It's supposed to help you determine if you'll get your money back in a higher house price when you sell. Of course, it doesn't take into account the satisfaction and enjoyment you get from improving your home. Sometimes the projects that make the most sense financially for resale may not make sense for you. But it's a good guideline.

Based on this year's report, it looks like we made the right choice last year to install Hardiplank siding on our house. Upscale siding replacement tops the cost vs. value list with a 103.6% return. We've also already completed #3 on the list--what the list calls a "minor" kitchen remodel that costs about $14,000. ("Minor"???? I'd say that's major, at least as far as my pocketbook is concerned.) That garners a 98.5% return on your investment.

I'm ready for #2. It's a mid-range ($10,000) bathroom remodel, with a 102.2% return. Of course, I guess we could've done that if we didn't get the new grand piano. But I imagine it wouldn't have as much nostalgia and meaning if, when I'm 85 years old, I fondly recall the bathroom remodel I got for my 50th birthday. The piano? I'll remember that.

I'd still like to do the bathroom someday, though. Someday sooner rather than later. But that won't happen unless the New York Times stock decides to something other than dive. In the meantime, check out the entire Remodeling list. I hear #17 calling us, too.