Phil Wengerd is Vice President of Market Strategies for ProVia
By Phil Wengerd
Recently we learned that four of ProVia’s key product lines – entry doors, replacement windows, vinyl siding and insulated siding – are named “best remodeling projects for maximum return on investment” in the 2014 Cost vs. Value Report released by Hanley Wood’s REMODELING magazine. In this report they measure the percentage of the cost of home remodeling projects (“Cost”) that is recouped in resale value (“Value”). The numbers shown in this report are averages from 101 markets across the U.S.
Of course we’re always glad to know we’re right in the middle of a sweet spot in the market. But I’m not here to bore you with the details of why this is good for ProVia. However, I do want to share just a few of the headlines, because there’s a whole lot of good news in here for everyone – including homeowners, contractors and dealers.
Here are the key takeaways I see from the report. There may be some “news you can use” in here!
The Trend is Continuing in the Right Direction. For the second year in a row, all product categories have gone up. By “gone up” we mean that a higher percentage of the money that is invested in a home remodeling project is recouped in the home’s resale value (in comparison to the prior year). From a big-picture economics standpoint, this is very encouraging news. What Does This Mean for the Homeowner? Buyer’s confidence is continuing to grow. This means that people can have more confidence that if they invest in their home, and put some money in to upgrade it, this is a safer move because the market is increasingly valuing home remodeling projects. Survey Says…Put a New 20-Gauge Steel Entry Door On Your House! If you look at the data it tells you – the first and foremost thing you should do if you want to invest in your home is put in a new 20-gauge steel entry door. Steel entry doors actually came in #1 in the survey (with a whopping 96.6% Cost-Value, as you can see in Figure 1). What this says to me is there’s a high value for curb appeal. And since doors rank so high overall in the survey (fiberglass entry doors were a top performer too, with a 70.8% Cost-Value) this speaks to me about the connection that homeowners have with their front entryway. People really want to have an entry with an inviting look, and this shows up in resale value. And when you compare the cost of an entry door with the other projects on this list, it’s a relatively low dollar amount to put back into your house, while gaining significant resale value.