Question: If I add new siding to the exterior of my home, can I expect a return on my investment?
Answer: Its a question we hear quite often from our customers throughout Colorado. And it’s an understandable one. Adding new siding, whether its fiber cement, vinyl or engineered wood, is quite the investment and knowing whether it adds or subtracts from your bottom line is just smart thinking. And of course, as with any home improvement or remodel project, the answer depends on a number of factors.
Choosing the right siding for your home and neighborhood is probably the most mitigating factor. By adding very expensive siding to a lower to mid-ranged priced home, you may just erase any chance of making that dollar back. However, adding quality siding to the exterior of most homes has historically proven to be a smart move. Not only does it instantly beautify a home’s exterior, it increases curb appeal and protects the home for years. Potential homeowners understand that vinyl and fiber cement siding lasts for years and is virtually maintenance free; making the choice to buy your home an easy one. With no immediate projects for them to take on, like painting or repair, buyers will be more attracted to your home for sale.
Another factor that your return on investment depends on is the type and price range of the siding you choose. It has been reported that mid-range vinyl has a return rate of about 78% but upscale fiber cement siding could return about 87%. Again, those estimates are affected by the strength of the local real estate market, the neighborhood in question and the state of the home before any upgrades are completed.