Three Interior Renovations on Most Valuable List

Washington, DC, Dec. 19, 2011 -- Realtors have once again rated many exterior improvements as among the most valuable home investment projects as part of the "2011-12 Remodeling Cost vs. Value Report."

"This year's 'Remodeling Cost vs. Value Report' shows the value of putting your home's best facade forward, so to speak," said National Association of Realtors President Moe Veissi.

"Inexpensive exterior replacement projects are not only crucial to a home's regular upkeep, but are also expected to recoup close to 70% of costs. Specific exterior projects such as siding, window and door replacements are part of regular home maintenance, so many homeowners are already undertaking them. These projects also do not require expensive materials and they have the added bonus of instantly adding curb appeal."

HouseLogic.com, NAR's consumer website, includes dozens of remodeling projects, from kitchens and baths to siding replacements, which indicate the recouped value of the project based on a national average.

This is the 14th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with NAR.

According to the "Cost vs. Value," seven of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. Realtors judged an upscale fiber-cement siding replacement as the project expected to return the most money, with an estimated 78% of costs recouped upon resale.

Three interior remodeling projects are also considered worthwhile investments. A midrange attic bedroom is expected to return 72.5% of costs upon resale; of all the projects in the report, it is the least expensive way to add a bedroom and bathroom within a home's existing footprint.

A minor kitchen remodel, expected to return 72.1% of costs, is fourth overall, ranking two places higher than last year. Nationally, the average cost for the project is just under $20,000 and is the least expensive way to give an existing kitchen a complete facelift.

A wood deck addition, landing at number seven overall, is expected to recoup 70.1% of costs. Improvement projects that are expected to return the least are a sunroom addition and a home office remodel, both estimated to recoup less than 46% of costs.