If you’re thinking of taking on some remodeling projects, not every home upgrade is going to give you an equal return on your investment. According to the most recent Cost vs. Value report from Remodeling.com, many home improvement projects will add value to your home. But most aren’t going to recoup the cost of the project.
If you’re going to spend some cash on home upgrades, it matters whether you’re doing them for functional purposes, to make your home more comfortable for you and your family, or to add value as you get ready to sell. For example, you might want a new kitchen or master bath, but you’re less likely to recoup your investment on a major remodel than some other projects. According to the latest study, here are the home upgrades that will give you the best return on your investment.
Home Upgrades That Add Curb Appeal
Curb appeal is essential for making an impression on buyers before they ever step foot in your home. The good news is that the money you invest in some of these projects has some of the highest ROI of any home upgrades.
Manufactured Stone Veneer
Manufactured stone veneer can replace siding and create an entirely different look to the exterior of your home. The material includes a water-resistive layer and is simple to install. Even better, it has the highest ROI of any home upgrade at 95.6%.
Another exterior home option is to replace your siding. According to the latest figures, you can get a 77.6% ROI with fiber-cement siding and a 74.7% ROI with vinyl siding.
Doors are functional, but they also add curb appeal and can increase the energy efficiency of your home. The ROI on a garage door replacement is 94.5%, and you can recoup 68.8% of your money by replacing your entry door with a steel one.
Home Upgrades That Add Space
Both homeowners and prospective buyers appreciate ample space. Most people that trade up are doing so to get access to more square footage. These projects can have a good to moderate ROI.
Outdoor spaces have become incredibly popular home features. Remodeling.com says you’ll get a 72.1% ROI with a wood deck addition and a 66.8% ROI with a composite one.
Master Suite Addition
If you want to add some space to your master suite, the average ROI for one of those projects is about 58.5%.
Home Upgrades That Enhance Your Interior
Most interior upgrades should be done for your benefit, but you can’t discount the fact that potential buyers will be relieved to walk into a kitchen and see that the appliances aren’t from the 80s. But, unfortunately, the ROI on these project can vary.
The extent of your kitchen remodel will determine the ROI. For example, a minor kitchen remodel has the highest ROI at 77.6%, and a major upscale kitchen remodel the lowest at 53.9%.
The same holds true for bathroom upgrade projects. A midrange bathroom remodel project has an ROI of 64%, and an upscale bathroom remodel or addition has an ROI of 56.6% and 54.7%, respectively.
Home Upgrades That Add Function
Most home upgrades that add function are done out of necessity instead of a desire for a high ROI. No one is going to buy or live in a home with a leaky roof or drafty windows. These projects do have a decent ROI, so they are worth your attention.
Windows can help with energy efficiency and aesthetics, but vinyl window replacement has a 72.3% ROI and wood just 68.9%.
If you need to replace your roof, your choice in materials matters. An asphalt roof replacement has a 65.9% ROI, and a metal roof replacement, a 61.2% ROI.
Whether you are thinking of buying a home, selling, or trading up, the Lafayette Team can help with its more than 20 years of combined experience in the Real Estate business. We take joy in helping clients achieve their real estate goals and have developed a reputation for delivering an exceptional client experience. Contact our office today to learn more about our personalized services.