Renovations With The Highest Return On Investment
Not every home improvement project is a good investment. In fact, some may wind up costing homeowners hundreds – if not thousands – of dollars more than what they’re worth.
Thanks to the popularity of makeover shows on HGTV and websites like Houzz, home improvement has been glamorized. In 2015 along, Americans spent more than $326 billion on home improvements and upgrades. But the question remains – is this project a good investment?
The following guide compares the cost of popular renovations with what homeowners can expect to recoup from the project. This can help homeowners choose renovation projects with the highest return on investment.
New garage door installation
- Average renovation cost: $3,470
- Value added: $3,411
- Return on investment: 98.3%
While a new garage door is not a glamorous upgrade, it is the home improvement project with the highest return on investment.
Manufactured stone veneer
- Average renovation cost: $8,221
- Value added: $7,986
- Return on investment: 97.1%
Manufactured stone veneer can quickly update the exterior of a home, helping the property look newer – and more expensive.
New front door
- Average renovation cost: $1,471
- Value added: $1,344
- Return on investment: 91.3%
Another exterior project with a high ROI, a steel entry door is a solid investment.
Patio, deck, or outdoor living space
- Average renovation cost: $10,950
- Value added: $9,065
- Return on investment: 82.8%
Outdoor living spaces are one of the most requested features in real estate. A beautiful wood deck or stone patio can help a home stand out from the competition.
Minor kitchen remodel
- Average renovation cost: $21,198
- Value added: $17,193
- Return on investment: 81.1%
A minor kitchen remodel often involves upgrades such as new flooring, new countertops, and new appliances. This type of remodel has a much higher return on investment than those where the entire kitchen is gutted; a major kitchen remodel has a much higher price tag – and a much lower ROI of just 59%.
- Average renovation cost: $19,134
- Value added: $13,422
- Return on investment: 70.1%
The old adage in real estate still rings true – kitchens and bathrooms sell houses. A bathroom remodel that includes new tile, fixtures, and upgraded finishes can help add significant value for a home; stick with a neutral, universally-appealing color pallet for an even higher return on investment.
by Author, March. 26, 2020