Making changes to your home is a major decision, as there are so many ways things could go wrong and the cost might not pay for itself. In order to make the best financial decision, it is important to stay up to date on which projects will lead to a greater return on investment. Here is a list of the top five best renovations to make on your home based on an annual report from Remodeling Magazine, a reliable source for remodeling projects. Remodeling Magazine has done extensive housing market research based on a myriad of factors such as interviews with agents, data on home sales, and more. It is no surprise that the majority of popular renovations this year are for outdoor spaces as the COVID-19 pandemic has forced people to spend more time outside. Continue reading to learn more about renovations with Greater ROI
It is important to note that for any exterior renovation project, many HOAs require plan submission for approval, but also limit materials allowed to be used. It’s always important to start with your community HOA before beginning any project.
1. Garage Door Replacement
This home project is recognized as the best project a homeowner can make to their property as it is cost effective and can make a big change to the curb appeal of your home. The cost of the project for a new two-car garage door was $3,907 while the resale value was estimated to be $3,663 or a 93.8 percent return on investment. While changing your garage door might not seem like it would make a large impact, don’t underestimate the power of first impressions. Double-car garage doors stand out so making subtle changes can go a long way into providing prospective buyers with positive impressions.
2. Manufactured Stone Veneer
While this renovation is much larger than replacing a garage door, it has a great return on investment. The job cost is estimated to be $10,386 with a 92.1 percent return of an estimated $9,571. Adding adhered manufactured stone veneer, or simply fake stone that looks natural, to the side of your house can make a huge impact on the curb appeal with potential buyers seeing the “good bones” of the property.
3. Minor Kitchen Remodel
The average cost of a minor kitchen remodel is predicted to be $26,214 with a resale value of $18,927 or a 72.2 percent return on investment. Kitchens and bathrooms are the rooms paid most attention to while potential buyers assess and make important decisions. Remodeling your kitchen for even minor repairs such as replacing cabinet fronts, appliances, or hardware can go a long way as well.
4. Siding Replacement
Another profitable renovation seen by homeowners this year had to do with replacing the siding. It is more cost effective to use fiber cement, a popular material that mimics both the look and durability of wood but requires little maintenance. Using fiber cement will cost around $19,626 with an estimated $13,618 in resale value making a 69.4 percent return on investment. Another popular material with a slightly lower return on investment is vinyl siding with a 68.3 percent ROI.
5. Window Replacement
This renovation is another easy cost-effective project that maximizes functionality and can even work to reduce energy consumption. The window frames can be purchased in a variety of materials, and vinyl alternatives are the most economical. With an estimated cost of $19,385, a resale value of $13,297 which makes a 68.8 percent return on investment. Wooden replacements are also effective with a cost of $23,219 and allows for a 67.4 percent recoup of the cost.
If you have questions regarding a possible renovation project or are weighing options between home renovation or selling, don’t hesitate to reach out!