Before taking on a home remodeling project, you probably spend at least a little time thinking about how it will benefit your home and life. You might even hear the hosts of home improvement TV shows talk about return on investment or ROI. ROI tells you whether or not a home improvement job is really worth it, but it's not a random determination. That's why marketing and research firm, Hanley Wood Company, creates a location-by-location annual Cost vs. Value report for guidance. The best part is that it's free.
To you, a project might be perfect for no reason other than the fact that you want it. But a real return on investment means that, once it's paid for, you'll recoup at least some of the cost in added value to your home. Using this report, you get a streamlined view of the average ROI for certain projects.
Dispelling Persistent ROI Myths
There are at least a couple of misconceptions about ROI that you should think about before taking on any home improvement project. First is the presumed versus actual increased value to your home. According to the report, home owners in and around the Dallas area who install new insulation can expect to recoup more than 100 percent of the cost. But what if the existing insulation was fine to begin with?
ROI depends heavily on whether or not the improvement is real. If your siding has seen better days and needs to be replaced, Brennan can install new siding that brings an ROI of about 73.7 percent. But you shouldn't expect your home's value to increase that much if the existing siding is fine.
Another myth is that dollars-and-cents ROI is the only reason to improve your home. In Dallas, window replacement could give you between 60 and 65 percent in ROI. If your existing windows are in good condition but not very efficient, imagine how much more comfortable you'd be with beautiful, new, energy-efficient windows from Brennan. Sometimes improving your quality of life is more important than financial gain.
Using the Hanley Wood Company's Report
The annual Cost vs. Value report breaks down several different home improvement projects based on the cost of the job, projected resale value after it's installed, and the cost recouped. Information is provided for the country as a whole, and then in smaller regions, such as Dallas and West South Central.
Project information is given in mid-range and upscale price points. An entry door replacement falls into the mid-range group, while window replacement is considered upscale. Using the most recent report, you'll notice several home improvement ideas for products that Brennan can install for you. Here's a look at some of what it covers:
- Fiberglass entry door: 100.0 - 122.6 percent ROI
- Steel entry door: 74.7 - 91.3 percent ROI
- Garage door: 96.8 - 100.100.7 percent ROI
- Home siding: 65.0 - 73.7 percent ROI
- Roofing: 70.2 - 71.4 percent ROI
- Grand entrance door (fiberglass): 76.1 - 68.8 percent ROI
- Upscale garage door: 82.2 - 84.8 percent ROI
- Vinyl window replacement: 60.1 - 69.9 percent ROI
- Wood window replacement: 64.2 - 71.9 percent ROI
These figures are estimates, of course. They're based on an evaluation of home improvement projects and their effect on a home's resale value after installation.
Improving Your Home in Meaningful Ways with Brennan
There are improvements, and then there are improvements. Some of the most beneficial ones are mainstays for Brennan's team of professionals. According to House Logic, a new front door and new siding are transformative. A garage door can be, too.
Something else to consider is that better quality products can increase your ROI even more than what the report shows. Siding from James Hardie is a perfect example. Where the Cost vs. Value report projects a home siding ROI of about 70 percent, give or take, James Hardie siding ROI can be much higher, at about 84.3 percent.
Home improvement is part of owning a home. Every home owner thinks about them once in a while. Brennan can bring them to life. It's a great partnership for homeowners in the Dallas area.
Considering every project on a case-by-case basis is part of what makes us different. We strive to evaluate your home as an individual that's as unique as you are. Any contractor can install a new window, but when you work with us, you'll know that your new windows, or any other project, are exactly the right choice for your home. Request an estimate today and start improving your home tomorrow.