7 Home Remodeling Projects with the Best Return on Investment
Putting money out for a home renovation can be a challenging decision, especially when you don’t have a clear idea of how much value it will add to your home in the long run.
Some of that uncertainty can be attributed to the labor or material costs, while the most pressing challenges are rooted in renovations or remodeling projects that do not offer a higher return rate on your investment.
With the costs of most goods rising every year, it would be wise to choose projects that can deliver the highest return on your investment in the form of a higher home value. To give you more insight, here are seven of the best remodeling projects that bring you the most ROI (Return on Investment).
Garage Door Replacement
Believe it or not, a garage door replacement is, across the US, one of the safest remodeling projects. The average ROI on a garage door replacement is 93.3% for an average investment of $4,041. As a result, many defer to garage remodeling as their first choice…especially when on a budget.
In addition, when getting a new garage door, it’s vital to ensure that you are not compromising on quality. Make sure to get a door with a lifetime warranty and for the materials to be long-lasting. For example, aim for galvanized steel for the door tracks and one of the multi-layered four square designs for the door itself. A way to save some cash could be to retain the motor from your previous garage door unless it has degraded over the years. This is also not a DIY project, so hire a professional, and let us know if you need any referrals if you’re in the area.
Manufactured Stone Veneer
Many homeowners find manufactured stone veneer attractive due to conventional reasons. On top of being stylistically appealing, it helps maintain heat in winter, cools the home in summer, and is one of the most sturdy of all building materials. In addition, it also offers one of the best returns on investment out of all remodeling projects.
The current ROI for manufactured stone veneer is 91.4%, which is quite high given the cost that goes into labor and materials. To make that more concrete (pun intended?), the average cost of this renovation is $11,066, out of which you are able to recoup roughly $10,109 post-sale.
It’s worth noting that when installing stone veneers, you will get the best results from dedicated professionals. If not installed properly, moisture can get trapped behind the walls, or the walls can even fall apart if not properly caulked and sealed. A professional team will help you avoid this, so when installing a manufactured stone veneer, it’s wise not to cut any corners.
Minor Kitchen Remodel-Midrange
A kitchen remodel offers many opportunities for you to recoup your investment if the current cabinetry has good bones. At 71.2%, the return on investment in most cases is fairly reasonable, given the impression it can have on potential buyers. You can leave the cabinet sections and drawers as is, and replace only the fronts with shaker-style panels or similar. You can also install new hardware to make sure everything looks and feels squeaky clean.
The most important components of a kitchen are the cooktop/oven and refrigerator. By replacing these with the latest models, your chances of securing a high bid are increased drastically. To accentuate the aesthetics of your kitchen, replace the countertops and install a mid-tier sink and faucet. For the final touch, repaint the walls, trim, and ceiling, so every element of your kitchen resonates well with the viewer. Be aware of the length of time for appliances to be delivered these days and plan ahead.
Siding Replacement-Vinyl and Fiber Cement
Redoing your siding is one of the guaranteed remodeling projects that can help you attract potential buyers, as long as your house has sidings. Sidings can be one of the more tricky remodels to work on, because, in the last 50 or so years, many types of siding have been developed…and some are better than others.
When landing on the right choice of siding replacement, look at the financial costs, but also the localized costs in your community. Even though the siding with the best ROI nationally is Fiber-Cement siding, other types of siding may offer a better ROI for your local community. However, the ROI on Fiber Cement is 68.3%, (which is the best out of most materials, and slightly higher than vinyl siding which is sitting at 67.2%).
Window Replacement
Replacing windows serves as a great chance to add some extra value to your home, but also to staunch out-of-control electric and heating bills. One of the common ways people lose money on their heating and electricity is when old windows leak out air conditioning and heat.
The standard choice for window replacement, wood, and vinyl are within 1% when it comes to their rate of return on investment. Vinyl is slightly higher at 67.5%, while wood sits at 66.3%. Since both replacement options are so close in terms of ROI, you can make your choice based on what works for your budget and fits the style of your home.
Deck Addition
Adding a deck to the property creates a focal point for the property, and is also one of the best ways to bring more value. The ROI for adding a deck to your property is 64.8% if you use a wood deck, with a composite deck being only slightly less economically friendly with 62.1%. However, once again, it’s important to consider the overall style of your home and which option would be more visually appealing to future buyers.
Asphalt Shingles
When getting a roof replacement, many experts recommend that you go with asphalt shingles over the relatively more modern metal roofing. Asphalt shingles last as long as metal roofing in most cases.
Likewise, the average cost for a metal roof is nearly double that of an asphalt roof, with a metal roof averaging about $51,436 compared to the $31,535 for an asphalt roof (depending on the size of your roof). All things considered, there are other factors that can sway your decision, such as initial costs, duration of the remodel, and extensive labor costs, so be mindful of those too for decision-making.
We hope you’ve found this helpful! Let us know if you’ve done any of the above or have been thinking of doing them to help you with the increased value of your home.
As always, if you’re thinking of listing your home, or if you don’t own a home, condo or similar, and are interested in buying, let me know so I can help walk you through the current market conditions, as well as all the resources and referrals I have from my many years of success in the industry. As a 10 year Five Star Real Estate Agent, knowing that no matter what is happening in the economy, and especially now, you need a professional real estate broker as your ally…and you’ll be in great hands with my team and me!
Please reach out, I’m here to assist and help you #moveforward,
Teresa Catania, Broker
West + Main Homes
West + Main Homes Oregon
Bend Oregon | Central Oregon | Portland Oregon
503-740-3293
teresa@teresacatania.com