If you own a home or are in the process of buying one, you may have a laundry list in your head of renovations you would love to undertake. And what better time than now?
Whether you hate your current bathroom or wish for a gourmet kitchen, there are probably a number of home renovations you can see yourself tackling to keep busy.
But what would be the return on those projects when it comes time for resale? If you are several years away from selling your home, the enjoyment and use you’ll get from these projects might make them worth the cost.
But if you are planning to sell your home within the next few months, you’ll need to see a large return on investment (ROI) in order to make those updates and upgrades make sense financially.
The good (and surprising) news is that the best return on investment in Remodeling Magazine’s 2017 study came from low-cost, common-sense improvements that are quick, easy, and bring big bang for the buck.
Note: With one exception, none of these home improvements will turn a profit for you, but they almost pay for themselves with the value that they add when it’s time for resale.
Fiberglass Attic Insulation ( ROI 107.7%)
How’s that for glamorous?
The only home renovation on the list that actually makes you money is installing low-cost fiberglass insulation. Modern buyers want eco-friendly homes that save the environment and save money.
Entry Door Replacement (ROI 77.8-90.7%)
A new entry door provides extra security and a facelift to your curb appeal that practically pays for itself. In mid-range upgrades, the steel entry door returned an impressive 90.7% of its cost at resale, while in the luxury category a fiberglass front door provided 77.8% ROI.
Manufactured Stone Veneer (ROI 89.4%)
The study found that removing the bottom third of vinyl siding from an existing home and replacing it with a manufactured stone veneer was an update that almost paid for itself.
The cost is almost $8,000 in most markets, but with this kind of return, it’s an improvement that can really make your listing pop.
Garage Door Replacement (ROI 76.9-85%)
Topping the chart for luxury homes and appearing high on wishlists for midrange, a new garage door is a surprising winner when it comes to ROI. In both scenarios, they replaced the garage door and tracks while retaining the existing opener system.
If your garage door opener is glitchy or has seen better days, it might be worth replacing it as well if you choose this update.
Minor Kitchen Remodel (ROI 80.2%)
While many of us dream of gutting the old kitchen and completely remaking it, when it comes to paying for itself smaller is better. The minor remodel replaced cabinet and drawer fronts, replaced laminate countertops with new laminate, replaced appliances and flooring, and refreshed paint or wall covering.
At an average cost of almost $21,000, this might be one you’d like to enjoy for a while before you sell.
Siding Replacement (ROI 76.4%)
In the midrange category, this was an improvement that boosts curb appeal and can really freshen up the look of the home. At a cost of more than $14,500, it’s one of the pricier items on the list but is clearly a valued improvement.
Window Replacement ( ROI 73.0-73.9%)
Whether you choose wood (73.0%) or vinyl (73.9%), this is an improvement that pays well in the luxury category. Oddly, it does not appear in the midrange category at all. This suggests this is an update buyers of moderate homes are less concerned with.
Other Home Renovations
A few more improvements that went over well? Anything that creates space!
Whether it was a basement remodel, a family room addition or even the addition of a second story, each of these was valued at around 70% ROI upon resale.
One new category that did very well includes handicapped accessible features throughout the home. At an ROI of 68.4%, this improvement’s strong showing is probably the result of the aging Baby Boomer population and their desire for accessible features as they approach retirement.
If you are thinking of selling your home, we can help! Let our Eng Garcia real estate professionals walk you through the latest in home improvements and renovations to help you make smart decisions as you prepare your home for listing. T
Then let our professional service take you all the way through your home sale to the closing table. We’re here with the best advice and knowledge to get you the best possible ROI on your largest investment–your home!