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Exterior Projects Recoup Value Better Than Interior Projects

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Home Improvement

Exterior Projects Recoup Value Better Than Interior Projects

But which is recommended more by Realtors? 

By By James F. McClister October 3, 2019
This article first appeared in the October 2019 issue of Pro Remodeler.

Exterior remodeling projects yield a higher cost-to-value ratio than interior projects, finds the latest Remodeling Impact Report from the National Association of the Remodeling Industry (NARI) and the National Association of Realtors. Yet, Realtors are less likely to suggest those projects than they are interior projects.  

Since 2015, going back two previous reports, as the graphs below show, exterior projects, particularly regarding new entry doors, garage doors, and a new roof, have better maintained their value than interior projects. But that’s not to say interior projects aren’t investments with solid returns. 

New wood floors and refinished floors, for instance, average 106% and 100% returns on value, respectively. 

Still, while exterior projects average better and more consistent returns (since 2015), Realtors are more apt to suggest homeowners complete interior projects prior to a sale. 

Why? Because as the data shows, home buyers aren’t as swayed by, say, new siding, as they are by a kitchen upgrade—despite vinyl siding averaging better value returns. 

That’s either an unfortunate reality for exterior replacement contractors, or an opportunity. Rich Politowicz, owner of R Professionals Group in Chicagoland, who we featured in a past article, has created a sizable amount of business by teaming up with local Realtors, educating them on the benefits of remodeling, and further making it easy for them to direct clients his way. (See “Realtor Lead Gen,” (Aug. 2019) our previous story featuring Politowicz, for the best ways to make and leverage real estate connections.)

written by

James F. McClister

James McClister is managing editor for Professional Remodeler.

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