Homeowners in Delaware and the rest of the South Atlantic region are among those more likely to recoup remodeling costs when they sell their homes, according to Realtors and remodelers who recently participated in Remodeling magazine's 2006 "Cost vs. Value Report."
Elsewhere in the country, the resale values of many remodeling projects has not kept pace with the costs of those projects, according to the report. While the cost of most remodeling projects continues to rise, resale values are decreasing.
The report said the trend ˇ°reflects a return to a more balanced real estate market in many areas of the country.ˇ±
Nationally, the most cost-effective projects were kitchen and bathroom remodels for the second straight year.
In 2006, the average major kitchen remodel cost $54,241, bringing a return of $43,603, an 80.4 percent return on investment. In 2005, the average major kitchen remodel cost $43,862 and returned $39,920, or 91 percent, the report said.
Midrange bathroom remodels recouped 85 percent of their cost in 2006, with expenses averaging $12,918 and resale values averaging $10,970, according to the report. Last year, the same project cost $10,499 and returned $10,727, or 102.2 percent.
The highest percentages of costs returned at resale were reported in the Pacific and South Atlantic regions, including Delaware, the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
Homeowners in the West North Central region (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) and East North Central region (Illinois, Indiana, Michigan, Ohio and Wisconsin) experienced some of the lowest returns.
The most profitable projects were midrange vinyl and upscale fiber cement siding replacements. The least profitable project was a home office.