Best payback on remodeling? You might be surprised

Home buyers like to be warm in the winter and cool in the summer – and are willing to pay to ensure their comfort. Attic insulation, new this year on Remodeling magazine's Cost vs. Value report, topped the annual survey as the only improvement project that returned more than it cost.

It returned 100.4 percent in Charlotte, and even more than that across the Southeast and rest of the nation.

It also reinforced one important lesson the survey delivers each year: The simplest and most affordable projects tend to add the most value at resale.

This year, construction costs for projects were provided by by RemodelMAX, which publishes estimating tools for remodelers. Then the magazine surveyed more than 4,000 real estate pros across the country, including Charlotte, about how much each project would add to a home’s value upon resale.

The 2016 Cost vs. Value report (www.costvsvalue.com) isn't a precise measure, of course, but it does provide a good starting point for any family weighing how best to spend remodeling dollars. Also, it's lots of fun.

Remodeling magazine lists the projects in two categories, midrange and upscale.

Among midrange projects in Charlotte, that attic insulation was estimated to cost $1,215 and return $4 more. The project includes air-sealing a 30-by-35 foot attic, then blowing in fiberglass insulation to an R-30 level. That was followed at the top of the midrange list by a new fiberglass entry door, which cost $3,065 and returned more than 88 percent at resale.

Among upscale projects in Charlotte, two returned more than 88 percent: Garage door replacement and new fiber-cement siding.

Also new this year was engineered siding replacement in the upscale category. That includes replacing 1,250 square feet of existing siding with siding of engineered wood or similar material. Such products include LP’s SmartSide and Boral’s TruExterior. The engineered siding cost less than fiber cement, but returned less, too: 74 percent at resale.

These and other exterior projects reflect another important lesson, one that the magazine's editors remind us of each year: Projects that add curb appeal add value.

How did popular kitchen projects fare in the 2016 report?

Well, the less you spend the more you recover. The minor kitchen remodeling project in the midrange category returned 83 percent, while a major kitchen project returned about 58 percent.

The major kitchen remodeling project in the upscale category –which cost a whopping $115,881 – also returned about 58 percent.

Finally, here are a few projects that ended up at the bottom of the list.

Among upscale projects in Charlotte, the bathroom addition and deck addition of composite material each returned about 55 percent at resale. More than half, but not by much.

Among midrange projects here, the backup power generator ranked last. It cost $11,913 to install, but returned just 46 percent at resale. So, how much are you willing to pay to ensure power – and hot coffee – for a couple of days during Charlotte's next ice storm?

This story was originally published January 14, 2016 at 11:10 AM with the headline "Best payback on remodeling? You might be surprised."