Whether you’re hoping to put your home on the market this year, or simply want to position yourself well for the future, it’s important to consider the return on investment you’ll get for any home renovation project you undertake. This will allow you to better allocate your budget and ensure the overall value of your property is maximized.
Here’s a quick look at six of the highest returning home renovation projects you can invest in, with ROI numbers drawn from the 2015 Cost vs. Value Report.
- Vinyl Siding Replacement
Deteriorating vinyl siding isn’t something to take lightly or ignore. Not only do warped and rotted boards look bad, but worn out vinyl actually increases your monthly heating and cooling costs and may allow moisture to penetrate into the interior of your home.
While it’s certainly not cheap to replace the vinyl on a home – averaging $12,013 per job – the good news is that you can recoup most of that cost. A quality vinyl replacement job will add approximately $9,694 in value to your home. That means the total ROI is 80.7 percent.
- Garage Door Replacement
Your garage door is the single largest moving object in your home. As such, it’s important to keep it functional, safe, and looking good. If you have a front-facing garage door (looking out towards the street), you especially want to care for it. A simple fix here or a tweak there can alter the entire look of your home. Thankfully, it’s not super expensive to replace a garage door. The average cost is $1,595, while it adds roughly $1,410 in resale value. That’s 88.4 percent in recouped costs.
- Bathroom Remodel
Moving to the interior of the home, let’s consider bathroom remodels. While cost estimates heavily depend on the materials used, the average remodel comes in around $16,724. However, it adds around $11,707 in value to your home. That means you can recoup 70 percent of your costs and rest assured you’re increasing the market value of your home.
- Minor Kitchen Remodel
There’s a big difference between a minor and major kitchen remodel. A minor kitchen remodel involves things like repainting walls, replacing laminate countertops, installing higher grade appliances, upgrading flooring, and changing out hardware. A major kitchen remodel may include structural changes, plumbing and electrical work, the installation of commercial-grade appliances, and other big-time changes. The former is cost-effective, while the latter has less favorable margins. The average cost of a minor kitchen remodel is $19,226, but you’re able to recoup 79.3 percent of the costs by increasing your resale value to a tune of $15,255.
- Finishing Attic Bedroom
Attic remodels are a great way to cost-effectively add square footage to an existing home. They also make for an incredibly unique addition. While the average price is a hefty $51,696, the extra space will actually increase the value of your home by $39,908. That’s a 77.2 percent ROI, making it well worth the cost if you’ll be able to enjoy the space for a few years.
- New Deck Addition
Would you love some more outdoor living space? A new 16×20 foot wood deck addition will cost you roughly $10,048, but adds $8,085 in resale value. That’s an ROI of more than 80.5 percent. At that price point, there are very few things you can do to your home that will have a more positive impact (from a value point of view).
Start Renovating Today
Home renovation projects are never easy. They take time, money, and careful monitoring. However, armed with the right information, contractors, and decisions, you can increase the value of your home and recoup the majority of the costs. Choose wisely!