Remodeling Projects That Payoff in Atlanta

Each year about this time Remodeling Magazine comes out with one of the most interesting articles of the year. The Cost vs. Value Report shows what the expected percentage return on investment should be for various remodeling projects and is divided by region of the country. As we have all learned real estate and related projects are very local. Even though home values have declined in many areas of the country, some remodeling projects have held their value very well and are a possible way for homeowners to add value.

Let’s examine several common remodeling projects and look at what area of the country has the best expected return, the worst expected return and how Atlanta compares.

1. Wood Deck Addition – The National Average for recouped value is 81.8%. The Best return is in the Pacific states with a 97.1% return while the North Central area shows only a 68.9% return. In the Atlanta area you could expect an 83.9% return on your investment.
2. Basement Finishing – The National Average for recouped value is 72.9%. The best return is in the South Central states with an 87.9% return while the New England states only show a 56.7% return. In the Atlanta area you could expect a 78.1% return on your investment.
3. Kitchen Remodeling (Midrange) – The National Average for recouped value is 79.5%. The best return is in the Pacific states with a 95.5% return while the North Central area shows only a 69.1% return. In the Atlanta area you could expect 79.9% return on your investment.
4. Window Replacement – Windows can be replaced either with wood or vinyl windows. The wood windows are a bit more expensive and therefore yield a slightly smaller return on investment. For the sake of this example we will look at wood window returns. The National Average for recouped value is 77.7%. The best return is in the Pacific states with a 93.9% while the North Central area shows only a 67.3% return. In the Atlanta area you could expect a 78.9% return on your investment.
5. Siding Replacement – With the various types of siding available in today’s market and the relative costs for each, for this example we will look at fiber cement siding. The National Average for recouped value is 86.7%. The Best return is in the Pacific states with a 96.2% return while North Central area shows only a 79.3% return. In the Atlanta area you could expect a 91% return on your investment.

This is by no means a complete list of all the projects examined but it does provide a good cross section for evaluation. For the most part I think we can see that in the Atlanta Real Estate Market remodeling projects are returning percentages above the National Average. This is due primarily to the favorable labor rates in the area along with ample supplies of building materials. If you have the skills and are able to provide the labor yourself your percentage of return on investment will skyrocket past these examples.

Are You Thinking of Selling

For those who are thinking of putting your home on the market, consult with a professional fulltime Atlanta REALTOR prior to undertaking any remodeling project. Get the ins and outs of what to expect for a return on your investment along with what projects may be required to get your home up to par with other homes in your neighborhood or maybe the best plan is to do nothing. An unbiased opinion may save you thousands of dollars.