The Best Home Renovation Projects to Consider
Home improvements don’t all have the same return on investment (ROI). Doing the best home renovation projects can add to your home’s:
- Comfort
- Looks
- Security
- Value
- Marketability
The wrong ones do the opposite.
Location is a big factor in what would be the best home improvement project for you. For example, pools bring in a great ROI in Florida, but not in North Dakota.
Keep in mind that the project doesn’t even have to be big. Many of the highest-returning investments are as simple as updating the paint, not adding an additional bedroom. A renovation can have a high value if you have a particularly dated or non-functional room.
Here is some information on home renovation projects for you to consider, as well as a list of the best ones and the worst.
Home Renovation ROI is Falling
As we mentioned earlier, there are certain remodeling projects that can increase your home’s resale value. You may not know, however, that it’s getting harder for homeowners to recoup the money they put into home renovation projects.
For instance, if you spend $50,000 on building a backyard patio, you won’t necessarily get an extra $50,000 on the house when it sells. In fact, the average ROI for a new patio, according to Remodeling Magazine’s 2018 Cost vs. Value Report, is only 47.60%.
Renovating the kitchen and bathrooms five or ten years ago could’ve produced more than a 100% ROI. It isn’t that way anymore. Projects that at one point would have paid for themselves don’t add as much value anymore due to increasing real estate and construction prices.
The Remodeling Report discovered that homeowners only earn 56% of their home renovation investments back. It has gone down 8% over the last two years.
Home improvements can, however, help you sell your home faster. Being able to sell your home in 30 days, rather than 120, can save you thousands if you have a mortgage. You will also have a nicer, more comfortable, efficient, and secure home before selling.
Best Home Renovation Projects
The five best home renovation projects, in terms of ROI, based on 2018 numbers are:
- Garage door replacement: Average cost of $3,470 with a return of 30%
- Manufactured stone veneer: Average cost of $8,221 with a return of 10%
- Deck addition (wood): Average cost of $10,950 with a return of 80%
- Minor kitchen remodel: Average cost of $21,198 with a return of 10%
- Siding replacement: Average cost of $15,072 with a return of 70%
Worst Home Renovation Projects
The five worst projects are:
- Backyard patio: Average cost of $54,130 with a return of 60%
- Master suite addition: Average cost of $256,229 with a return of 30%
- Major kitchen remodel (upscale): Average cost of $125,721 with a return of 50%
- Bathroom addition (mid-range): Average cost of $83,869 with a return of 60%
- Bathroom remodel: Average cost of $61,662 with a return of 20%
You should remember that these are national averages. The ROI for your home will depend on its condition before any improvements and your location. For example, a mid-level kitchen remodel will probably have a high ROI if your current kitchen is ugly and really dated. People don’t want to have ugly kitchens and bathrooms.
Concentrate on ‘Curb Appeal’
It won’t matter how much you spent to redo the kitchen if your front lawn scares people away. A majority of potential buyers will drive by without bothering to look inside the house.
You could remedy that with a few hundred dollars by doing a few small projects, like:
- Touching up the paint on the front door
- Power washing the home’s siding and walkways
- Planting some new shrubs and flowers
These improvements will get more buyers to stop by your house and take a look around. Then you will be able to showcase all of your big-ticket renovations.
Just remember that home renovation projects are not created equal. You can research online or give us a call so we can help you determine which projects will have the best ROI. We will help you look at some comparable properties in your area to decide which renovations add the most, and least, to your home’s resale value.