Note: This article is part of a series devoted to giving pertinent, professional advice to Louisville’s homebuyers and sellers. Find more great articles in our Top 10 category.
Let’s be honest. In this economy, money is tight. People are now being very creative, coming up with new ways to keep more money in their own pockets. Home improvement is one great way!
Here at LouisvilleHomesBlog.com, we want to provide the very best in real estate information and advice so that you can make the decisions that best fit your situation. With that in mind, the National Association of Realtors publishes a Cost vs. Value Report every year. This is great stuff! What’s even better is when you find data for our specific market. That’s what we have and you’ve come to the right place.
The following home improvement projects are ordered by Cost Recouped. This data is also specific to the East South Central region where Louisville KY real estate is located. This region contains Tennessee, Mississippi, and Alabama as well.
1. Siding Replacement – 91.5%
The average costs for foam-backed vinyl siding are $11,111 where the resale value increase is $10,165 for a cost recouped a percentage of 91.5%. Fiber-cement siding is only slightly less at 90.2%, so it’s also a good choice. Vinyl siding, without the foam backing, came in much lower at only 84.6%.
2. Deck Addition – 85.2%
The average costs for adding a wood deck addition to a Louisville home is $8,903. This increases the resale value by $7,588 for a cost recouped a percentage of 85.2%. Projects like these can also add a bit of “wow factor” for lower-priced homes and could possibly be necessary for homes in more expensive neighborhoods where having a deck is expected. Using composite decking only returns a 71.7% for Louisville Kentucky.
3. Basement Remodel – 83.9%
The average costs for a mid-range basement remodel is $53,552 where the resale value increase is $44,924 for a cost recouped a percentage of 83.9%. These numbers are considered average for our area so you can expect there is potential to spend much less or much more. In either case, remodeling an unfinished basement in Louisville is a very good investment, especially when you consider that the national average is only 72.9%.
4. Bathroom Remodel – 83.1%
The average costs for a mid-range bathroom remodel is $14,413 where the resale value increase is $11,973 for a cost recouped a percentage of 83.1%. An upscale bath remodel comes in at $47,265 and increases the resale by $37,471 for a recoup of 79.3%. Each of these remodels beat the national numbers by 9% so they are smart choices for Louisville home sellers.
5. Window Replacement – 81.8%
The average costs for vinyl window replacements are $12,289 where the resale value increase is $10,049 for a cost recouped a percentage of 81.8%. This number is several points higher than the 76.2% recouped the cost of using wood replacement windows.
6. Kitchen Remodel – 81.1%
The average costs for a minor kitchen remodel are $20,307 where the resale value increase is $16,461 for a cost recouped a percentage of 81.1%. A major kitchen remodel comes in at $106,369 and increases the resale by $79,050 for a recoup of 74.3%. Currently, the kitchen is the hottest room in the house for Louisville home buyers. If yours is in need of updates, this may be the home improvement project for you.
7. Attic Bedroom – 79.8%
If this is a possibility for your home, you’ll see an average additional cost of $42,277 return $33,749 for a recoup value of 79.8%. This also adds square footage to your home which may attract more buyers than previously possible.
8. Bathroom Addition – 73.1%
The only case where the upscale version beats the mid-range version is the bathroom addition. Adding an upscale bathroom in our region costs $67,217 and returns a resale value of $49,149 for a recoup cost of 73.1%. The mid-range bathroom addition only returns a 69.5%.
9. Two-Story Addition – 72.1%
Though very pricey—$131,511—the two-story addition returns $94,791 for a recoup value of 72.1%.
10. Backup Power Generator – 69.9%
Rounding out our Top 10 Louisville Home Improvement Projects is adding a backup power generator to your home. The cost is $12,820 which yields a resale value increase of $8,957 for a cost recouped a percentage of 69.5%. This beats the national average of 57.2% by more than 12%.
As you might guess, all these numbers are down from 2007 levels. It also should be mentioned that the publishers of this report only track certain home improvement projects, usually, just the larger ones, so smaller projects can possibly yield even more. Contact your Realtor® (or drop me an email) for great advice on what will give your Louisville home the most bang for the buck.