8 Home Remodeling Projects That Add Value to Your Home
These home improvements provide the most bang for your buck
How much will this improvement add to the value of my home?
Much of the time, the answer is not as much value as it costs to actually make the improvement. But some home renovations provide more return on investment than others. Here are seven midrange projects that provide the most bang for your buck, according to Remodeling magazine’s Cost vs. Value report.
First let’s just take a brief look at Renovations that bring the greatest percentage return on investment, then we’ll explore each in greater detail. Then, After we take a greater look at these home improvements; we’ll include a list of those projects the return the least percentage return on investment.
Renovations that bring the greatest percentage return on investment:
1. Entry door replacement: 101.8 percent
2. Wood deck addition: 87.4 percent
3. Attic bedroom: 88.5 percent
4. Garage door replacement: 83.7 percent
5. Minor kitchen remodel: 82.7 percent
6. Window Replacement: 78.7 percent
7. Siding Replacement: 82.5 percent
8. Basement Remodel: 77.6 percent
1. Entry Door Replacement
Just as they did last year, Realtors® identified a steel entry door replacement as the project expected to return the most money, with an estimated 101.8 percent of costs recouped upon resale (compared to an estimated 96.6 percent recoup last year). The steel entry door replacement is consistently the least expensive project in the annual Cost vs. Value Report, costing little more than $1,200 on average and was the only project on this year’s list to recoup more than 100 percent of its cost at resale on a national level.
2. Wood deck addition
Homeowners who add a wooden deck, which costs an average of $9,539 nationwide, recoup an average of 87.4 percent of the project’s cost when they sell the home, according to the report. Keep in mind that municipalities typically require a permit to build a deck.
3. Attic bedroom
Renovations within the existing envelope of your home – those that don’t require you to build an addition or expand the roof and foundation – often return more value than building extra rooms onto your home, and they’re much cheaper. Converting an attic into a bedroom ranked third of the 35 improvements in the report, returning an average of 88.5 percent of the amount spent.
4. Garage door replacement
The curb value of your house depends on one thing: the buyer’s first impression. If you want to know how to increase the value of a home, think about how you would feel walking up to the sidewalk as you approach a house you might buy. The first thing you would notice is the exterior of the house. Picture the difference between a modern, orderly, attractive exterior and a house with gutters falling off and a pile of old tires in the driveway. If you want to increase the resale value of your house, you need to grab the buyer at first glance with a clean, neat, beautiful exterior. Homeowners who maintain their house’s exterior can expect a yearly home value increase. The sweat equity that you put in will increase home value.
If your garage door needs replacing to add to the very important factor of curb side appeal, you’ll earn an 83.7 percent of the project’s cost when selling.
5. Minor kitchen remodel
Updated kitchens still bring a significant payoff, especially at resale time: A minor kitchen remodel adds an average of 82.7 percent of the project’s cost back to the home’s value. Kitchens are important, Aaron says, because would-be buyers often overestimate how much they cost to update. The average cost of a minor kitchen remodel – new cabinet doors, appliances, countertops, sink, faucet, paint and hardware – was $18,856 nationwide, according to the report.
6. Window replacement
Perhaps it’s time increase the energy efficiency of your windows. Swapping existing 3-by-5-foot, double-hung windows with insulated wood replacement windows costs an average of $10,926, and returns an average of 79.3 percent of the amount spent, according to the report. Insulated vinyl replacement windows cost about $1,000 less and return an average of 78.7 percent of the amount spent.
7. Siding replacement
The national average to replace 1,250 square feet of existing siding with new vinyl siding, including all trim, is $11,475, according to the report. On average, the project will return 82.5 percent of the amount you spent to the value to your home.
8. Basement remodel
A basement remodel isn’t cheap: Finishing the lower level of a house to include an entertaining area and a full bathroom costs an average of $62,834 nationwide. You can expect to recoup an average of 77.6 percent of the project’s cost when you sell the home, according to the report.
Note these renovations that yield the smallest return on investment:
- Home office remodel: 48.9 percent
- Sunroom addition: 51.7 percent
- Bathroom addition: 60.1 percent
- Backup power generation: 67.5 percent
- Master suite addition: 67.5 percent