Does New Siding Increase Home Value?

You can’t judge a book by its cover, yet potential buyers may form an opinion of your house before setting foot inside by how it appears on the outside. They’ll even pay 7% more for a home on average with great curb appeal than one with a neglected exterior, according to agents surveyed by HomeLight.

Since you only have one chance to make a great first impression, warped or faded siding could turn potential buyers off. As you prepare to put your house on the market, ask yourself — does new siding increase home value?

Is new siding worth the expense?

While a siding upgrade can improve curb appeal, bring more buyers to your door, and help raise your sales price, it’s an expensive undertaking that involves finding the right contractor and evaluating a multitude of materials.

We’ve gathered information from siding industry professionals and top real estate agents to aid in choosing the best product for maximizing resale value.

Weather and time take their toll

Siding safeguards your home from pests, fire, and harsh weather while enhancing its appearance. But years of wear and tear can degrade siding and leave your home susceptible to structural issues, mold, and deteriorating walls.

Look for these signs that your siding should be repaired or replaced:

• Faded color
• Higher heating and cooling bills
• Cracks, chips, or broken sections
• Loose, warped, rotted or missing panels
• Mold, mildew or rust
• Holes in siding
• Bubbling paint
• Multiple paint jobs within a few years
• Moisture inside the home

Lower cost alternatives for a great first impression

Before investing big bucks in new siding, determine if damaged panels or boards can be repaired or replaced. A small unresolved issue can leave your home vulnerable to air, water, dirt, and insects. If you’re handy, visit Home Depot for supplies to solve minor problems. For more extensive damage, you’ll pay about $340 to $1,350 for a pro to do the repair work.

Sometimes a fresh coat of paint gives new life to a dowdy, dated exterior for less money than replacement siding.

“If the paint’s cracking or looks like it’s peeling, you’re going to want to paint the exterior,” advises Marie Collins, a top-performing agent in St. Cloud, Florida.

Painting your home’s exterior for about $3,000 adds an estimated $7,571 in resale value for a 152% ROI, according to HomeLight’s Top Agent Insights for New Year 2022. Costs vary depending on the size of the property and type of siding. But beware — some siding materials, such as metal and vinyl, are not suitable for painting or could have maintenance problems if painted.

Collins also suggests pressure washing dirty or moldy siding to spruce up curb appeal.

Siding solutions that increase home value

Although the dents in your siding might bring back memories of playing baseball with your kids, a gallon of paint won’t make those dents disappear. If your home’s exterior requires more than a paint job or a minor repair, get ready to dip into your bank account for a complete siding overhaul.

New siding can set you back $5,447 to $16,652 or an average of $10,945, reports HomeAvisor. But don’t let sticker shock deter you since you’ll recoup most of this cost in resale value. For two popular siding options, fiber cement and vinyl, homeowners recover 86% and 82% of their investment, respectively, according to the 2022 Remodeling Impact Report by the National Association of Realtors® (NAR) and the National Association of the Remodeling Industry (NARI).

As an added bonus, new siding can increase your home’s energy efficiency to put extra cash in your wallet with lower utility bills over the long term. You can also resolve hidden problems lurking underneath your old siding, such as mold, insects, or dry rot, before they become major issues or a home inspection roadblock.

Weigh the pros and cons of siding options

While the answer is generally ‘yes’ to the question “does siding increase home value,” just how much depends on which product you choose. Costs vary depending on your location, the type and quality of material, house size and shape, and whether existing siding must be removed.

Be prepared to pay an extra 5% to 10% this year for building supplies and deal with long delivery times due to increased demand, according to HomeAdvisor.

Continue reading to compare costs, advantages, and drawbacks of different options so you can increase home value with new siding that meets your needs, style, and budget.

Vinyl

Low maintenance, versatility, and affordability make vinyl the most popular residential siding material in the U.S.

“The upside is the variety of choices in style, color, manufacturers, and price, which can be on the lower end if you install the typical 4-inch siding,” says Kevin Busch, Vice President of Operations of Mr. Handyman, a Neighborly company that provides home maintenance and repair services.

Styles include horizontal lap or clapboard, vertical, shake, log, Dutch lap, beaded, smooth, board-and-batten, and scalloped. Vinyl siding can also be made to look like brick or stone.

Ranging from $3 to $12 per square foot or an average of $7.50, vinyl siding installation costs between $6,104 and $16,908 with an average price of $11,506. Expected ROI is 82%.

Insulated vinyl

Rigid foam insulation attached to each panel increases the energy efficiency of insulated vinyl siding for greater comfort and lower utility bills. The foam also adds protection against dents and cracks. Starting at a slightly higher price of $4 per square foot, ROI drops to about 67%.

Pros of vinyl siding

• No painting or caulking required
• Easy to clean with soap and water
• UV-resistant coatings protect against fading
• No risk of insect or water damage
• Easy and less expensive to install
• Wide selection of colors and styles
• Greater energy efficiency with insulated vinyl

Cons of vinyl siding

• Damaged panels cannot be patched
• Extreme heat can melt vinyl
• Temperature changes cause planks to break or split
• May show age and wear in 10 to 15 years
• Lower-grade vinyl can warp, fade, or dent

Fiber cement

Fiber cement is a mixture of sand, cement, water, cellulose fiber, and wood pulp. Available in wood and stone finishes as well as panels, shingles, and planks, fiber cement is attractive and durable. This product is also non-combustible and resists hail damage.

However, difficult installation adds to the price. “It requires special tools to install and silica plumes are released when cut, requiring installers to wear respirators,” explains Andy Lindus, owner of Lindus Construction, a Twin Cities-based home remodeler.

Installation of fiber cement siding costs an average of $13,904 and ranges from $6,550 to $21,977. Although you’ll pay $5 to $14 per square foot or an average of $10, you’re likely to recoup 86% of your cost.

Pros of fiber cement siding

• Resistant to wind, fire, insects, UV rays, and severe weather
• Lasts up to 50 years when maintained
• Many colors, styles, and textures
• Less likely to dent, fade, chip, or crack

Cons of fiber cement siding

• High labor and installation costs
• Requires routine maintenance
• May need repainting and caulking
• Potential for foundation problems due to heaviness
• Absorbs moisture leading to damage and mold growth

Wood siding

The natural beauty of wood siding is eye-catching, but requires ongoing maintenance to protect against water and termite damage. Pine, oak, cypress, spruce, redwood, and cedar are commonly used. Styles include bevel or clapboard, shakes, board-and-batten, and split log.

Costing from $3 to $10 per square foot for most wood species, installation runs about $12,500 on average or from $7,000 to $23,000. ROI for wood siding is 77%.

Pros of wood siding

• Warm and natural appearance
• Versatile and customizable
• Easy to install and repair

Cons of wood siding

• Susceptible to water, mold, rotting, and insect damage
• High-maintenance
• Requires staining or painting for longer lifespan
• Warping and cracking
• Combustibility increases fire risk

Engineered wood

For the striking look of wood at a lower price and with greater durability, consider this easy-to-install replica. Materials such as wood fibers and chips, resin, sawdust, wax, and glue are placed under heat and pressure to create engineered wood.

Costs range from about $2.50 per square foot or $5,000 for masonite and $3 to $7 per square foot or $10,000 for composite wood. Sellers recover an average of 79% of their investment when they sell.

Pros of engineered wood siding

• No warping or shrinkage
• Rot-resistant
• Simple repair and installation
• Eco-friendly

Cons of engineered wood siding

• Requires routine maintenance and sealing
• Moisture issues if not properly installed or maintained
• Vulnerable to mold and insects

Aluminum

Common decades ago, aluminum siding is still an affordable, long-lasting option that offers durability with minimal maintenance. At an average cost of $14,500, you’ll pay between $10,000 and $19,000. Materials cost $3 to $7.25 per square foot. Repainting reduces ROI of about 70%.

Pros of aluminum siding

• Withstands temperature changes
• Easy to install
• Recyclable
• Waterproof and doesn’t rust
• Insect-resistant

Cons of aluminum siding

• Dents easily
• Damaged sections need to be replaced
• Becomes chalky over time
• Requires repainting due to fading and discoloration

Steel

If the modern look of metal siding appeals to you, then steel is an incredibly durable, low-maintenance option. Although it doesn’t dent as easily as aluminum, steel’s heavier weight increases labor costs.

Averaging $4 to $9 per square foot, installing steel siding runs from $6,000 to $13,500. Since steel is a poor insulator, you’ll pay at least $1 more per square foot for insulation underneath to reduce energy bills. ROI averages 86%, but rises to 95% on the East Coast.

Pros of steel siding

• Extremely durable
• Fire-resistant
• Recyclable
• Withstands harsh winters and windstorms
• Low-maintenance

Cons of steel siding

• Difficult to install due to weight
• Poor insulation
• Special-order product increases delivery time

Stucco

Composed of sand, cement, and lime, stucco has various textures and patterns for a unique appearance, especially when mixed with pebbles or shells. One of the most durable siding options, stucco is also one of the most costly.

Although a stucco exterior can last up to 50 years or more, it doesn’t hold up well in rainy climates. Water that gets behind stucco can lead to a rotting wood frame and mold growth, which is expensive to remedy. Settlement cracks can be easily fixed with sealant.

At an average price of $10.50 to $18.50 per square foot installed, you could invest between $21,000 to $37,000 to re-side with stucco. You might be disappointed with the average 70% ROI, although this varies depending on where you live.

Pros of stucco siding

• Resistant to pests and fires
• Requires little maintenance
• Good insulation with multiple coats
• Low-maintenance

Cons of stucco siding

• Requires skilled installer
• Likely to crack and chip without proper installation
• Doesn’t last long in rainy climates
• Potential for mold growth and rotting wood

Natural stone

Few building materials can compare to the uniqueness, durability, and longevity of natural stone. Granite, limestone, and slate create a stunning facade.

But the great expense, considerable weight, and difficulty replacing damaged stones are significant drawbacks.

Expect to pay $30 to $48 per square foot for installation of natural stone siding. The average cost is $64,500 with a range of $57,000 to $72,000. But you’ll get back most of your investment in resale value with an ROI of 92%.

Pros of natural stone siding

• Maintains cool temperature in hot weather
• Resistant to fire and insects
• Requires little maintenance
• Eco-friendly
• Lasts the lifetime of your home

Cons of natural stone siding

• Requires skilled mason for proper installation
• Expensive to install and repair
• Colors limited to those found in nature
• Potential damage to foundation from heavy weight

Faux, veneer, or manufactured stone

You can achieve the elegant look of stone siding on a more affordable budget with man-made products such as faux, veneer, or manufactured stone. These lightweight materials are easier and cheaper to install than natural stone, but not as strong or long-lasting.

Molds cast from actual stone and rock patterns give faux stone siding a realistic appearance. Stone veneer is a natural stone mix placed over materials like fiber cement or wood timber. It can be customized to fit a particular pattern unlike faux stone. Manufactured stone siding is made from concrete and more vulnerable to extreme weather.

Priced from $5 to $12 per square foot, you could pay from $10,000 to $24,000 depending on which imitation stone option you choose. Installation of stone veneer siding costs an average of $12,188 or between $8,250 and $16,125. Stone veneer has an ROI of 91.4%.

Pros of faux, veneer, or manufactured stone siding

• Variety of colors, styles, and patterns
• Realistic appearance
• Less expensive than natural stone

Cons of faux, veneer, or manufactured stone siding

• Less durable than natural stone
• Vulnerable to erosion and cracking
• Susceptible to fading and discoloration
• Degrades over time with exposure to rain and sunlight

Brick

Brick siding gives your home a classic look while providing superior protection in case of fire or harsh weather. Made from clay, cement, and gravel, a brick exterior is extremely durable and can last for decades.

Although traditional bricks are heavy and could put your foundation at risk, thin brick veneer is less expensive and provides many of the same benefits. Bricking just the front of your home amps up curb appeal at a lower cost.

You’ll spend somewhere between $8,900 and $25,000 to install brick siding or an average of $18,000. Brick siding costs an average of $15 per square foot with a range of $9 to $28. While ROI averages 77%, it’s not unusual to exceed 80%.

Pros of brick siding

• Long-lasting and durable
• Energy-efficient
• Virtually maintenance-free
• Resistant to fire, wind, and pests

Cons of brick siding

• Limited color selection
• Difficult to replace or repair damaged bricks
• Painted brick requires routine maintenance

Six strategies to select the perfect siding 

The options may seem overwhelming, so focus on materials that attract buyers at a cost that can be recovered in the resale price. Follow these tips to select new siding that increases value:

1. Consider your existing siding

Save money and avoid installation hassles by choosing a product similar to your current exterior rather than making a radical change like replacing vinyl siding with stucco. Some materials can be installed over old siding which reduces the cost of siding removal and disposal. For example, vinyl or aluminum panels are often placed on top of wood siding.

2. Factor in your climate

Durability of most siding products depends on the weather, so take your climate into account. Don’t choose wood or stucco if you live in an exceptionally rainy area. For extreme weather conditions, select siding that can withstand impact such as steel or engineered wood.

3. Learn about trends from local real estate agent

Connect with a top real estate agent for insight into which siding materials and colors appeal to buyers in your market. An agent can offer guidance so you can recoup your investment with new siding that increases home value.

Consult With a Top Agent

Working with a top agent to sell your home is a great option for selling your home faster and for more money. Great agents can also be resources for helping you get your home ready for the market, including prioritizing any major project, like new siding, that your home might need.

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4. Look around your neighborhood 

You might love the modern look of steel, but if you live in a community of traditional colonials then brick siding might be a better fit. Don’t choose a siding that differs from the majority of homes in your neighborhood or your house will stick out like a sore thumb.

Sell your house faster and for more money by re-siding with a material that blends in with surrounding homes. Consider using brick or stone in conjunction with less expensive products to wow buyers at a lower cost.

Check with your homeowner’s association for regulations about siding materials and colors before undertaking your renovation.

5. Choose a color to maximize resale value

Since your home’s color is the first thing people notice, opt for neutral colors that appeal to most buyers. Stick with gray tones, shades of brown and blue, green hues like sage, light yellows, or timeless white.

For the best resale value, select a color that’s popular in your neighborhood and local real estate market. Choose a color that complements your home’s architectural style as well as your roof, trim, and front door.

6. Find the right contractor

You’ll get the most value out of your siding renovation with proper installation, so it’s critical to choose the right contractor. Ask neighbors, friends, and real estate agents for recommendations. Start your search on websites such as Modernize and HomeAdvisor.

Obtain estimates from several licensed contractors who are experienced in installing the material you’ve selected. Check references as well as reviews or complaints with the Better Business Bureau. Don’t forget to ask for copies of licenses and proof of insurance.

New siding increases home value 

Worn, cracked, or discolored siding can cause buyers to walk away and reduce your home’s value. The enhanced curb appeal of new siding can boost the number of serious buyers as well as the sales price they are willing to pay.

A siding upgrade not only makes a terrific first and lasting impression, but offers benefits that increase home value, such as lower energy costs and protection from severe weather.

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