Thinking about replacing your home’s siding is almost like thinking about having major surgery.
It’s a big deal. It can be nerve-wracking. And it’s expensive.
Sometimes, surgery is necessary. You broke your collarbone or tore your ACL. Other times, it can be purely cosmetic.
The same goes for a siding replacement. Maybe there is rot and damage beyond repair, so you must get it replaced. Or maybe, you just want a new look on your home’s exterior.
Either way, you know it’s going to be a large investment, not only of your money but of your time and effort as well.
So, before getting your siding replaced, whether it's out of necessity or luxury, you want to know that it will be worth it. A part of knowing this is knowing what the return on investment will be for your siding replacement.
If you’re putting such a large sum of money into your home, are you going to get anything out of it in return?
While we’re aware of the benefits of replacing your home’s siding and the value it gives your home, we want you to be assured that replacing your siding is a good investment.
You want to know what your ROI is for replacing your home’s siding and how you can assure you get the biggest ROI possible, so your siding replacement will be worth it for you.
This article will provide an exact percent ROI for a siding replacement, nationally, regionally, and locally to San Antonio with data from 2021. We will also outline what that ROI consists of and where you see that value in the future.
After reading, you will understand what your ROI for your siding replacement project can be and know how your ROI is maximized.
What is my ROI for a siding replacement project in 2021?
Knowing what your return on investment will be when you replace your siding is important to understand the value of this project.
Whether you’re replacing your siding out of necessity or for a fun upgrade, it’s a big investment. So, what kind of return will you see, and what’s the value of that investment?
According to the Remodeling 2021 Cost vs. Value Report (www.costvsvalue.com), the percentage of cost recouped of a fiber cement siding replacement on the national level is 69.4%.
For San Antonio homeowners, the percentage of cost recouped is 52.1%, with the West Southern region average being 66.5%, according to the Remodeling 2021 Cost vs. Value Report (www.costvsvalue.com).
For a vinyl siding replacement, the cost recouped percentage is between 43.5% to 68.3% looking from a local to a national perspective.
These percentages are the 2021 national averages calculated using real value data from realtors around the country. However, it’s important to understand that many factors influence the cost of a siding replacement and the ROI, like siding type, installation, and warranty.
What do these percentages mean to me?
Now that you know what the cost recouped is on a national, regional, and local level, what does this really mean?
Simply put, these percentages mean that the cost you put into your siding project, you’ll get a percentage back. The Cost vs. Value report calls this the cost recouped, but you can also look at it as your percent ROI.
What makes up the ROI of a siding replacement?
Sometimes, it can be confusing to look at a number and understand what it really means. You can understand what the percentage of the money you’ll see back from your siding investment is, but why is the number what it is?
Where do you see your return on investment?
When it comes to a siding replacement, there are a couple of areas you’ll see your return on investment, which we’ll dive deeper into here.
#1. Replacing your siding saves you costs in future maintenance
The first place you’ll see a return on your siding investment is in maintenance costs, especially when you invest in a high-quality, low-maintenance siding type, like fiber cement.
This is especially true if you have older siding that has been on your home for 20 or more years.
Like many things, the older your siding gets, the more care and maintenance it requires. If you have old siding or just inefficient siding that isn’t protecting your home as it should, you will see your ROI in maintenance and repair costs.
The biggest areas of maintenance you see with siding are rot and repainting. So, if you replace your siding with a rot-resistant siding type that is also UV stable, you won’t have to worry about maintaining it and spending more in the future.
Other maintenance issues you will save with a high ROI siding investment could be critter and insect infestation, rot getting into the substrate, or repairing chipped or cracked boards.
But, if you want a high ROI, you will need to invest in a high-quality siding that is made to last.
#2. Replacing your siding will improve your home’s energy efficiency
Similar to future maintenance costs, replacing your siding can improve the energy efficiency of your home, thus saving you money in the energy costs of your air conditioning system.
If you have old or damaged siding on your home, you may notice your energy costs rising over time. Similar to windows, your siding provides insulation for your home. The older siding is, and depending on the siding type you have, the more it will wear and will not protect your home.
With older and thin siding, your home may not be as insulated as it could be. Then, you will see higher costs on your energy bill.
If you replace your siding with a high-quality and durable siding type, your home will be more insulated and help regulate the internal temperature of your home. So, you’ll see that return on investment in lower energy costs over time.
#3. Replacing your siding can increase the resale value of your home
The second way you’ll see your ROI with a siding replacement is in the resale value of your home.
Replacing your siding can increase the value of your home by providing added curb appeal, improved durability, longevity, and energy efficiency. Whether you plan to resell your home or not, new siding is a selling point for many buyers.
For example, if you were in the market for a new home and had it narrowed down to two options, one with newer siding and one with old siding that would need replacing, you’d most likely choose the home with the newer siding.
Increasing the resale value of your home is one way you will have a return on your investment.
So, what kind of ROI will I see if I replace my siding?
Now that you know what the percent of the cost recouped is for a siding replacement on a national, regional, and local scale, you have a better idea of what type of ROI you will see from your project.
It’s also important to know where you will see the ROI to better understand how a siding replacement can improve your home and provide you with a high investment.
When you replace your home’s siding, your return on investment is seen through future maintenance and energy costs and the resale value of your home. These ROI factors again will be higher when you invest in high-quality siding that is built to last.
With Southwest Exteriors, we want you to know the value of your siding project to understand the worth behind it. We exclusively offer James Hardie fiber cement siding because it provides San Antonio homeowners with numerous benefits and a high ROI.
However, we know this siding is not the only siding available, and it may or may not be the right one for you. No matter what siding type you choose, we just want you to understand what you will get out of your investment and what to consider before replacing your siding to get the best ROI.
So, if you’re getting closer to starting your siding replacement project, you’re still considering things like siding types, styles, finding a contractor, and so much more.
It’s important to outline your goals for your project, like how you want it to look, how long you want it to last, how you want it to perform, and your budget. All of these factors come down to the siding type you choose.