8 Home Renovation Projects with the Highest ROI
We all want the perfect house, and of course, we want it to be comfy, updated and welcoming at all times! Keeping it updated can force us to dip into our savings account and it may seem as though the updates are a never-ending-list. It is important to know the average return on investment (ROI) of the projects you are thinking about completing so you can get the biggest bang for your buck. Being happy with your home is a big factor but happiness, that feeling - let's be honest here - is not a measurable variable when it comes to ROI.
So, we have listed the 5 Highest ROI Home Renovation Projects. This list could help you with the decision-making process of what needs to be renovated in your home before you sell.
1. Entry Door Replacement
We know it sounds simple, but it’s true. Replacing your front door can make a huge impact on the value of your home. However, be sure to choose a style that fits well with the style of your home. If it doesn’t flow with the style, it can actually decrease the ROI.
Fact: Steel doors bring in a bigger ROI with a national average of 101.8%. Fireglass doors bring in an ROI of 72% and Grand Entrance Fiberglass brings in an ROI of 67.6%.
2. Installing/Updating Your Fireplace
Many buyers love having a cozy fireplace in their home. In fact, it has been a subject of many an episode of HGTV's show: Fixer Upper. Joanna Gaines is known to create very homey ambiance in every home they fix and she makes it a point that the fireplace (and an updated mantle) be a focal point of the living room and that its design flows throughout the room.
Fact: According to Marshall & Swift’s Appraisal Handbook, 91% of the installation costs of a putting in a new fireplace are recouped and bring in an average of 54% ROI.
3. Kitchen Remodel
This room can make or break the sale of your home. Want to make your home impossible to walk away from without receiving an offer? Update the kitchen. Don't have enough budget to update the entire kitchen? These spots are the most popular "replacements" when remodeling the kitchen:
1. Countertops and backsplashes
2. Paint or wallpaper
5. Get that farmhouse tub sink!
4. Bathroom Improvements
The bathroom is another prime place for renovations. There are small details that you can improve in this room that does not need to be costly. Replacing the vanity, lighting, and toilet is an inexpensive way to dramatically improve the look and feel of the room. If you feel that it is too much work changing toilets, then some added accessories might help change the room's ambiance i.e. open shelving, a photo, or even a plant.
5. New Windows
Replacing old windows can brighten a room and resale prospects. There’s no need to splurge though, you're not going to get your money back with a top of the line window. Remodeling Magazine reports vinyl replacement windows to have a 74 percent return on investment, giving them a 1 percent edge over wood windows. Aside from that, a window box or two (or three), adds to the overall aesthetic and monetary value of the house, because, curb appeal!
6. More Square Footage
Adding a room or two or five can be a good investment, particularly if you live in a hot housing market. Much of the demand is driven by homeowners who want more space, but then realize they can't afford larger homes in their own neighborhood. Refinishing a basement or an attic can dramatically boost the value of a house in some areas. A 2015 National Association of Realtors report considered the value of converting a basement to living space. It estimated homeowners could expect to recoup 69 percent of the project price. The return on investment for converting an attic to living space was estimated at 61 percent. If you decide to take this route, note you may need to get estimates on these changes to bring the space to life:
1. Strengthen the floor, insulate, and finish.
2. Adding a bathroom
3. Creating stair access.
7. Improved Landscaping
The National Association of Realtors and the National Association of Landscape Professionals conducted a survey in 2016 to determine which outside projects offer homeowners the best value. An overall landscape upgrade topped the list with an estimated 105 percent return on investment. Just goes to say that even in hot housing markets, the old saw holds true: "If people drive by your home and are not impressed they're not going to walk inside,"
8. Siding Replacement
Curb appeal is a major reason that siding replacement ranks so highly on the Cost vs. Value report. Replacement siding also offers the added value of being low maintenance, an important issue for cost-conscious buyers. This ROI varies across regions of the U.S., however, the national average ROI is 80.7% for Vinyl Siding, 84.3% for Fiber Cement Siding, and 77.6% for Foam Backed Vinyl.
We hope these tips help you decide which renovation projects you want to tackle this year.
If you need any help, feel free to contact us and we can customize your list to make sure you get the highest return!