Michael Seeley first learned about James Hardie fiber-cement siding 10 years ago when he worked on a Habitat for Humanity project.
Later, he researched the product and talked to a neighbor who had it installed. Two months ago, when it was time for some exterior maintenance projects on his Dunwoody house, Seeley decided the time was right to install the durable, low-maintenance siding.
On a referral, he hired Walter “Mark” Daher, an Alpharetta-based full-service contractor to oversee the project, which included new siding, paint, gutters and some porch repairs.
Although Seeley and his wife don’t have plans to move, he thinks the new siding, which has the beauty and character of wood, was a good investment.
“The company warranty was part of the motivation for me,” Seeley said. So was the potential resale value.
According to an annual cost vs. value report released in January by Remodeling magazine, Seeley made a smart choice.
Replacing a home’s siding with fiber-cement panels can earn back 79.3 percent of the project cost when the house sells, according to the report’s national survey. In the Southeast and Atlanta area, the payback is higher: 87.9 percent.
New siding can add curb appeal and be a plus for prospective buyers. But for people staying in their homes, a kitchen renovation is more important, said Judy Mozen, president of Atlanta-based Handcrafted Homes Inc. and treasurer of the National Association of the Remodeling Industry, a trade group.
“My experience has been that, regardless of return on your money, the kitchen is desired first, the master bath second,” Mozen said. “After that, homeowners often turn their attention to street appeal.”
In the magazine’s report, popular midrange projects included replacing a front door with steel and adding an attic bedroom. The report also included upscale projects, such as a kitchen and bathroom remodel. But all were projects that replace worn or aged home components, bring part of the home up to date or add living space without expanding the home’s footprint, according to the magazine.
Here are some of Remodeling magazine’s top upscale and midrange projects, including project costs, resale value and the estimated return on your investment. The first figures are national averages. Figures in parentheses are averages for the South Atlantic region and the Atlanta area.
Upscale projects
Siding replacement (fiber cement):
Project cost: $13,083 ($12,167)
Resale value: $10,379 ($10,692)
Payback: 79.3 percent (87.9 percent)
Garage door replacement:
Project cost: $2,720 ($2,632)
Resale: $2,046 ($2,017)
Payback: 75.2 percent (76.6 percent)
“Replacing a garage door (the largest door in your house) can be the difference between a plain vanilla home and a stylish, attractive home,” said Allen Pfenninger, a spokesman for the garage door industry.
Note: A new garage door is also a top midrange remodeling project.
Window replacement (vinyl & wood):
Project cost (vinyl): $13,055 ($12,624).
Resale value: $9,295 ($9,266)
Payback: 71.2 percent (73.4 percent)
Project cost (wood): $16,361 ($15,849)
Resale value: $11,194 ($11,113)
Payback: 68.4 percent (70.1 percent)
Deck addition (composite):
Project cost: $34,403 ($32,359)
Resale value: $20,532 ($20,180)
Payback: 59.7 percent (62.4 percent)
Note: Deck additions (composite and wood) are also popular midrange projects.
Midrange projects
Minor kitchen remodel:
Project cost: $18,527 ($17,476)
Resale value: $13,977 ($13,023)
Payback: 75.4 percent (74.5 percent)
A minor kitchen renovation is more like a face-lift. It may include new laminate countertops, sinks, faucets and appliances. The floor is untouched, and the old cabinets are refaced with new hardware added, according to the magazine.
Note: Nationally, a major midrange kitchen remodel generally costs $53,931 and earns back 68.9 percent. In Atlanta and the Southeast, the kitchen remodel costs $51,044 and recoups 71 percent of the construction costs.
Attic bedroom:
Project cost: $47,919 ($44,429)
Resale value: $34,916 ($35,021)
Payback: 72.9 percent (78.8 percent)
Bathroom remodel:
Project cost: $15,782 ($14,612)
Resale value: $10,295 ($10,194)
Payback: 65.2 percent (69.8 percent)
Basement remodel:
Project cost: $61,303 ($56,432)
Resale value: $43,095 ($44,949)
Payback: 70.3 percent (79.7 percent)
“In the last few years, as homeowners have opted to stay in their homes, they have decided to increase their space and add value to their homes by finishing all available square footage,” said Mozen, an EarthCraft builder and renovator. “This has meant that basement renovation has been a busy category for us.”
FYI
To learn more about other home improvement projects and their payback, check Remodeling magazine's 2013 Cost vs. Value Report at www.remodeling.hw.net.
