Many homeowners are eager to begin remodeling projects as warm weather hits. While this seems like a good way to add value to their home, a lot of homeowners don’t take into consideration the return on investment (ROI) these projects can offer when they’re ready to sell. With the rising costs of material and labor, these are not decisions one should make lightly.
According to Remodel Magazine’s newly-released report on Cost Vs. Value, the percentage of ROI for home replacement projects are predicted to decrease this year. Larger indoor remodeling projects are projected to take a hit as well, but not as severe as replacement projects because they rely more on labor costs rather than costs of materials.
So, what kind of remodeling will get you the most bang for your buck? Here’s a list of projects with the best ROI:
1. Garage Door Replacement
- Average Cost: $3,611
- Average Resale Value: $3,520
- 97.5% ROI
Few home improvements can increase your home’s curb appeal as quickly and affordably as a new garage door. The range in costs can vary, depending on the type and number of doors, your garage’s structure, and your plans to do it yourself or hire a professional. A good way to get an accurate estimate on cost is to ask for bids from several professionals.
2. Manufactured Stone Veneer
- Average cost: $13,333
- Average Resale Value: $8,449
- 94.9% ROI
Manufactured Stone Veneer is made of cement, lightweight natural aggregates, and iron oxide pigments that gives it the natural stone color. The very first stone veneer was made of natural stone and manufactured in the 19th century. Manufactures sliced the natural stone into thick slabs, and cement wasn’t used for this process until the 1950s.
3. Minor Kitchen Remodel
- Average Cost: $22,507
- Average Resale Value: $18,123
- 80.5% ROI
Remodeling your kitchen may be exactly what your home needs, but it’s important to understand renovation costs and how to set a budget that works for you and can ultimately get you the most ROI.
4. Wood Deck Addition
- Average Cost: $13,333
- Average Resale Value: $10,083
- 75.6% ROI
A deck addition can be as simple as a platform that stands on its own a couple inches off the ground, or as complex as a multi-level structure with steps, railings, trellises and more. Determining your wants and needs is a great way to start planning the structure and costs of your new deck.
5. Siding Replacement
- Average Cost: $16,036
- Average Resale Value: $12,119
- 75.6% ROI
Replacing your home’s siding can be a daunting task as there are many options, costs and materials to choose from. Keep in mind that low-cost siding may save you money at first, but more expensive siding lasts longer and doesn’t need to be replaced nearly as much.
6. Steel Entry Door Replacement
- Average Cost: $1,826
- Average Resale Value: $1,368
- 74.9% ROI
Insulated steel is commonly used for exterior doors because of its energy efficiency, security and durability. Doors made from steel also have high insulation than wood doors and require little maintenance. They are typically less expensive than wood or fiberglass doors, which can ultimately give you the best ROI in terms of exterior doors.
7. Vinyl Window Replacement
- Average Cost: $16,802
- Average Resale Value: $12,332
- 73.4% Return on Investment
Replacing vinyl windows is much easier than wood or large casement windows, and homeowners can easily achieve this without having to hire a professional. In fact, vinyl replacement windows are made for simple installment.
8. Fiberglass Grand Entrance
- Average Cost: $8,994
- Average Resale Value: $6,469
- 71.9% ROI
Fiberglass composite doors are generally less expensive than wood and are growing in popularity. They can imitate the look of real wood, with an embossed wood-grain texture. Their best-selling point is they often come with long limited warranties – some as long as the life of the home.
9. Wood Window Replacement
- Average Cost: $20,526
- Average Resale Value: $14,530
- 70.8% ROI
Wood windows offer the best insulation value and a both environmentally sustainable and durable. Many homeowners prefer wooden windows because of the natural look and in that sense can offer a better ROI than other materials.
10. Bathroom Remodel
- Average Cost: $64,743
- Average Resale Value: $38,952
- 20.2% ROI
If your bathroom is in good working condition but slightly dated, it might not be worth undergoing a full remodel just to get a fresh, new look. However, if your bathroom has more severe issues like cracked tile, mold, structural defects, water damage or electrical issues, you should definitely consider remodeling if you are planning to sell.