The ROI of Home Improvement Which Projects Add Value to Your Home
It is time to start this renovation
Whether you’re making upgrades for your own enjoyment or preparing to sell your home, the right remodeling projects add both value and curb appeal. According to Remodeling Magazine’s Cost vs. Value report, a minor kitchen remodel yields an ROI of 85.7 percent.
However, not all renovations are created equal. To maximize your return, consider these seven home improvement projects that add resale value.
Add New Siding
Making home improvements is a labor of love that adds value to your property. Whether you’re turning your attic into a family room or upgrading the kitchen with new appliances, the satisfaction of creating a space tailored to your lifestyle while knowing it boosts your home’s market value is unparalleled.
That’s especially true for exterior renovations. While interior discretionary remodels like kitchen upgrades can have their own rewards, exterior projects like roof and siding replacement offer the best returns on investment.
The top two ROI projects are hardwood floor refinishing and new wood flooring, which both return over 100% of the initial investment. Vinyl and fiber cement siding selections also rank high in ROI, offering 86% and 82% of investment recovery respectively. These projects can be quite expensive, but they’re worth it in the long run when boosting your resale value. In fact, the ROI of new siding exceeds that of many luxury kitchen and bathroom renovations.
Install Insulation
Home insulation is an important investment to make for your home. It will not only increase the value of your house but it will also keep it warmer in the winter and cooler in the summer. Choosing the correct type of insulation will also protect your home from moisture and insects.
The return on investment of adding insulation to your home will be much greater than that of many other projects such as a new front door or manufactured stone veneer. In fact, according to the 2023 Cost vs. Value Report by Remodeling Magazine, a homeowner can expect to recoup 117% of their initial investment when they install fiberglass attic insulation.
While added insulation does not significantly improve the appearance of your house from the outside, it does provide significant energy savings that will help lower your utility bills. In addition, prospective buyers will be impressed by this feature and will likely pay a higher price for your house.
Add a Deck
A deck offers an outdoor living space that is ideal for entertaining and relaxing. It also adds value to your home, particularly if you plan on selling it in the future.
According to the Cost vs. Value report from Zonda Media (which owns trade publications like Remodeling), a minor kitchen remodel is one of the best projects for getting a solid ROI, recouping 85.7 percent of your investment. A minor kitchen remodel includes replacing appliances with energy-efficient models; refacing cabinets and adding new hardware; installing new countertops and a sink; repainting the walls, and more.
A major kitchen or bathroom remodel is rarely worth the investment, unless it fixes a serious design flaw. Instead, consider making cosmetic upgrades to your current kitchen that will appeal to a wide range of buyers.
Add a Garage
Adding a garage to your home can yield an ROI of sixty-four to eighty-one percent. This makes it one of the best projects to consider if you want to increase your home’s value for resale purposes. However, you should be careful not to overdo it and improve your house beyond the average price range for the neighborhood.
Remodeling Magazine and Zonda Media (the company that publishes trade publications like Remodeling) release annual Cost vs. Value Reports to help homeowners make informed decisions about which home improvements offer the highest returns. Some renovations can provide a return on investment of more than 100%, while other upgrades pay for themselves in the short term or through long-term energy savings. For example, refinishing hardwood floors offers an ROI of 147%, while new wood doors or fiberglass windows typically earn 86% or more. These investments are also low-maintenance, which will appeal to potential buyers looking for a turnkey home.
