Homeowners Recoup More with Exterior Replacement Projects, REALTORSR Report

As part of the 2010-11 Remodeling Cost vs. Value Report, REALTORSR recently
rated exterior replacement projects among the most cost-effective home
improvement projects, demonstrating that curb appeal remains one of the most
important aspects of a home at resale time. "This year's Remodeling Cost vs.
Value Report highlights the importance of exterior projects, which not only
provide the most value, but are also among the least expensive improvements
for a home," said National Association of REALTORSR President Ron Phipps.
"Since resale value can vary by region, it's smart for homeowners to work
with a REALTORR through the remodeling and improvement process; they can
provide insight into projects in their neighborhoods that will recoup the
most when the owners are ready to sell."

Nine of the top 10 most cost-effective projects nationally in terms of value
recouped are exterior replacement projects. The steel entry door replacement
remained the project that returned the most money, with an estimated 102.1%
of cost recouped upon resale; it is also the only project in this year's
report that is expected to return more than the cost. The midrange garage
door replacement, a new addition to the report this year, is expected to
recoup 83.9% of costs. Both projects are small investments that cost little
more than $1,200 each, on average. REALTORSR identified these two
replacements as projects that can significantly improve a home's curb
appeal.

"Curb appeal remains king-it's the first thing potential buyers notice when
looking for a home, and it also demonstrates pride of ownership," said
Phipps.

The 2010-11 Remodeling Cost vs. Value Report compares construction costs
with resale values for 35 midrange and upscale remodeling projects
comprising additions, remodels and replacements in 80 markets across the
country. Data are grouped in nine U.S. regions, following the divisions
established by the U.S. Census Bureau. This is the 13th consecutive year
that the report, which is produced by Remodeling magazine publisher Hanley
Wood, LLC, was completed in cooperation with REALTORR Magazine.

REALTORSR provided their insight into local markets and buyer home
preferences within those markets. Overall, REALTORSR estimated that
homeowners would recoup an average of 60% of their investment in 35
different improvement projects, down from an average of 63.8% last year.
Remodeling projects, particularly higher cost upscale projects, have been
losing resale value in recent years because of weak economic conditions.

According to the report, replacement projects usually outperform remodel and
addition projects in resale value because they are among the least expensive
and contribute to curb appeal. Various types of siding and window
replacement projects were expected to return more than 70% of costs.

Upscale fiber-cement siding replacement was judged by REALTORSR as the most
cost effective among siding projects, recouping 80% of costs. Among the
window replacement projects covered, upscale vinyl window replacements were
expected to recoup the most, 72.6% upon resale. Another exterior project, a
wood deck addition, tied with a minor kitchen remodel for the fourth most
profitable project recouping an estimated 72.8% of costs.

The top interior projects for resale value included an attic bedroom and a
basement remodel. Both add living space without extending the footprint of
the house. An attic bedroom addition costs more than $51,000 and recoups an
estimated 72.2% nationally upon resale; a basement remodel costs more than
$64,000 and recoups an estimated 70%. Improvement projects that are expected
to return the least are a midrange home office remodel, recouping an
estimated 45.8%; a backup power generator, recouping 48.5%; and a sunroom
addition, recouping 48.6% of costs.

Although most regions followed the national trends, the regions that were
consistently estimated to return a higher percentage of remodeling costs
upon resale were the Pacific region of Alaska, California, Hawaii, Oregon
and Washington; the West South Central region of Arkansas, Louisiana,
Oklahoma, and Texas; the East South Central region of Alabama, Kentucky,
Mississippi and Tennessee; and the South Atlantic region of the District of
Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina,
Virginia and West Virginia.

The regions where REALTORSR generally reported the lowest percentage of
costs recouped were New England (Connecticut, Massachusetts, Maine, New
Hampshire, Rhode Island, and Vermont); East North Central (Illinois,
Indiana, Michigan, Ohio and Wisconsin); West North Central (Iowa, Kansas,
Minnesota, Missouri, Nebraska, North Dakota and South Dakota); and Middle
Atlantic (New York and Pennsylvania).

"It's important to remember that the resale value of a particular
improvement project depends on several factors," said Phipps. "Things such
as the home's overall condition, availability and condition of surrounding
properties, location and the regional economic climate contribute to an
estimated resale value. That's why it is imperative to work with a REALTORR
who can provide insight and guidance into local market conditions whether
you're buying, selling or improving a home."

For more information, visit www.realtor.org. <http://www.realtor.org/>