Remodeling Spending: A Waste Or Worth It?

If you are considering a home renovation but weighing the cost versus the long-term gains, you are not alone. Some candidates for home remodeling projects get cold feet because they fear that they'll sell the home before seeing a return on investment. But, consider these facts:

• There was a time in America when it was considered “normal” to move frequently. But, those footloose days are coming to an end. According to the U.S. Census Bureau, only 11 percent of Americans moved to a new residence last year – the lowest rate on record.
• Employees at IBM used to ruefully joke that the company’s initials stood for “I’ve Been Moved.” In 2000, nearly 23 percent of American workers changed residences to take a new job. Now that number has shrunk to just 11 percent.
• According to NAHB, the average length of stay for first-time homebuyers is 11.4 years – and nearly 15 years for those in their second home.
• About 85 percent of Baby Boom homeowners have no plans to move. That’s roughly 33 million homes where remodeling ROI might be a safe bet.

But, here’s the best reason to not delay a home-remodeling project: you’ll recoup most of the cost when you do sell – whether it’s next year or in 2030. For example, a siding replacement recoups 75.6 percent of its investment because it increases average home resale value by more than $12,000.  

Unlike the warranties for HVAC systems or granite countertops, some siding warranties can give you peace of mind for 50 years, like the LP^® SmartSide^® Siding 5/50 year limited warranty. It is longer and covers more than most fiber cement product warranties. LP^® siding products offer five decades of protection against fungal degradation, buckling, cracking and more and the limited warranty also includes damage from hail (see warranty for details). In short, re-siding is one of the highest-value investments that a homeowner can make.