You’ll likely complete several home improvement projects before listing your home, but it can be tricky to know which ones will increase its selling price. If you’re considering siding replacement, here’s how to determine whether it's worth the money in the long run.
If you’re looking to sell your home in the near future, you may be considering which home repair or improvement projects will hit the top of your to-do list. There’s likely not enough time to cross everything off the list, so you’ll want to choose projects that are both doable within your timeframe and will add to your selling price as to recoup your costs. Some projects can get quite costly, while others add value at a cheap cost to you.
Whether or not to replace the siding on your home before putting on the market depends on several factors — the siding’s current condition, how much time you have, the value of your home, the cost to contract the job based on your area, and a good cost-benefit analysis.
Current Condition
Since your siding’s job is to protect the home against pests, water, fire, and other damages caused by vulnerability to the great outdoors, it's a pretty important part of its physical structure. If the siding is incredibly damaged you might benefit from its replacement before listing. However, if the siding is just old and there are some issues here and there, you’re probably okay leaving it as is.
Timing
If you’re relocating for a job or need to move quickly, you may not even have the option of having your siding replaced. This type of work is scheduled well in advance and can take some time depending on the time of year and weather conditions.
Value of Your Home
If your home is worth just $50,000, you would never expect to recoup the cost of double-digit siding replacement. But, if you own a home worth half a million dollars, you probably wouldn’t think twice. Look at the full picture of your home’s value to determine whether to make the repair.
Price of the Job
Before you decide one way or the other, get an estimate for the job and consult with a local real estate agent to get their opinion. Siding replacement can come at a cost between about $5,000 and $14,500 and varies depending on demand in the area. If you can eke by at the lower end of that range, it may be worth looking into.
Cost-Benefit Analysis
When it comes down to it, whether or not to replace your siding is a purely a numbers decision. An agent may be able to give you a comparative market analysis (CMA) with and without siding replacement based on other similar homes in the area. This could make your decision for you. Is the difference in selling prices significantly higher than the cost of the job? If so, it’s likely a good idea to go through with replacement.
According to the National Association of Realtors’ 2017 Remodeling Impact Report, all new siding could have a return on investment (ROI) of 75%. This means you’re likely to get back what you put into it, plus 75%.
If you’re considering whether or not to replace the siding on your home before selling, an experienced real estate agent can provide helpful guidance as to which improvements are necessary or could make a positive impact on your selling price.
Clever Partner Agents are top-rated real estate agents who are experts in their local markets. They come from major brands and regional brokerages — like Keller Williams and Century 21 — and offer the same full service as other agents. The only difference is that they have agreed to work for a 1.5% listing fee ($3,000 minimum). This means the same quality service of other agents but more money in your pocket.
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