With home sales down across the country and remodeling projects recouping progressively less since the record 2005 year, which projects make sense in a year such as 2009? Which ones will be an improvement for you to enjoy now and be resale-friendly later? With any remodeling project, especially in a tough economy, you should consult with professionals on costs and a realtor about real estate values. Many different factors contribute to the ability to recoup a portion of your costs, so it’s important to talk with those professionals about your specific area’s factors. You must consider your own financial situation carefully before proceeding with any major investment.

It won’t surprise you that small projects are “in” while big projects (additions, etc.) are “out”. You can never go wrong improving your curb appeal. Kitchens and baths have always been and still remain the magic rooms. Energy efficiency can only help both you and the next owner.

Americans are expected to spend $217 billion on remodeling in 2009, according to Gopal Ahluwalia, staff vice president for research at NAHB. That’s up from the $210 billion spent in 2008 and not far off from the $218 billion spent in 2007.

So which specific projects will warrant attention in ‘09?

1. Widows and Siding Replacement - Nationwide, these were two of the highest projects in terms of amount recouped in the recent Cost vs. Value Report by Remodeling Magazine from 77%-80% in mid-range and 80%-86% in upscale categories. In the East South Central region, these recoupable amounts were comparable. For upscale homes both windows and siding replacement ranked highest in return: foam-backed vinyl - 91.5%; fiber-cement vinyl - 90.2%; windows - 81% for vinyl and 76% for wood). Vinyl siding replacements in mid-grade homes, ranked #2 in recoupable value. These projects increase curb appeal and can give a home quite a face lift. Even better, it makes the home easier to maintain. Energy efficiency from new windows are dramatically better than older ones.
2. Anything green - Adding energy efficiency to your home can only help. Some of those projects include caulking, insulating, reinsulating, replacing doors and windows, and energy-efficient skylights. Other green projects include low-flow faucets and toilets, energy-efficient appliances, high efficiency furnaces and hot water heaters.
3. Deck addition - Both Nationwide and in the East South Central region, it was the most recouped mid-range project (wood materials) at 85% in the East South Central region and 81% nationwide. On the upscale list, the return was not as high. If every other house in your neighborhood has a deck, buyers will expect one when you look to sell. On the other hand, if you’re one of the few that have a deck what a differentiator you have!
4. Cosmetic updates - Cosmetic upgrades create huge impacts. Simple projects include painting, replacing carpet or tile, replacing hardware in bathrooms, putting in hardwood floors, updated and matching appliances such as stainless, etc.
5. Cosmetic Plus - Going a step further in cosmetic updates can really differentiate your home with things such as faux finishes, crown molding, etc.
6. Kitchen remodel - You’ve heard it a thousand times. Kitchens and bathrooms sell homes. It was true yesterday. It’s true today. It will be true tomorrow. Major remodels have the biggest impact overall and give a high return for the investment, but minor remodels can certainly differentiate your home and make it pop. A minor kitchen remodel was in the top 5 of mid-grade recoupable projects at 81.1% in our region. Minor kitchen projects include: upgraded counter tops, replacing appliances, installing new and improved faucets and/or sink, or refacing cabinets. With a bigger budget installing one luxury appliance could be a winner like: built-in espresso machine, two drawer dishwasher, or wine chiller.
7. Bathroom remodel - It’s just as important as the kitchen and brings a high return on your investment. Fancy tile work or stone can have a huge impact in the shower area if you have the budget. Otherwise, tile replacement, hardware, cabinetry and counter tops can all be an improvement. It had the fourth highest mid-grade return in our region at 83.1% and fell right behind windows and siding for upscales at 79.3%.
8. Better use of rooms - Big additions are not going to score big right now, but reinventing an existing space can work wonders. For example, make better use of the mud room or family foyer. Create a place to store sports equipment, crafts, and other similar items. Insert a desk nook.
9. Lighting - Nothing can date a house more or impact a homeowner’s mood like lighting. Improved lighting and new light fixtures can make a room and your whole house look and feel radically different.
10. Basement remodel - While it’s important not to over spend in the basement, especially if it is not a walkout, they are a little more rare in our specific region and can make a difference in your home. In our region, basement remodels ranked right up there as #3 in terms of recoupable value at 83.9% return on average.