Before the real estate crash, homeowners were busily remodeling and flipping houses, confident that even the most lavish improvement would provide a return on investment. But since the start of the recession, the rate of remodeling has slowed significantly. These days, consumers are cautiously approaching improvements to their homes. And they are playing close attention to which of these improvements will pay off as home prices are still dropping in many markets.
A recent article in Door & Access Systems noted that Remodeling magazine’s annual Cost vs. Value Report consistently left out garage door replacement when studying the remodeling industry. Garage door industry executives funded their own study on the topic but indicate that this category will be included in future Remodeling magazine reports. Based on the study results, Sal Alfano, editorial director of Remodeling magazine says garage doors, "improve curb appeal in a way that can affect a potential buyer’s first impression and, consequently, a home’s resale value.”
Here are the results of the study for mid-range projects:
- Entry door replacement (steel) Cost = $1,218. Resale value = $1,243. Cost Recouped = 102.1%
- Garage door replacement Cost = $1,291. Resale value = $1,033. Cost Recouped = 83.9%
- Deck Addition (wood) Cost = $10,973. Resale value = $7,986. Cost Recouped = 72.8%
- Siding Replacement (vinyl) Cost = $11,357. Resale value = $8,223. Cost Recouped = 72.4%
Clearly there are several remodeling investments that pay off for consumers who plan to sell their homes. Based on the results of this report, home remodelers as well as vendors who sell entry and garage doors, decking and siding, will be marketing the value of these investments.[Source: Wadsworth, Tom. Garage Doors Rank #2 for ROI. Door & Access Systems. Winter 2010–2011. Web. 19 Jan. 2011]