Remodeling Your Home: 10 Types of Renovations That Pay Off
Americans spend around $340 billion on home renovations every year.
Fueled by a recovering resale market combined with fewer homes for sale, this trend shows how many homeowners are opting to upgrade their existing property with a view to increasing its future resale value.
But, remodeling your home doesn’t always pay off as much as people hope. If you’re expecting potential buyers to cover a significant part of the expense, it’s important to choose the right home renovation project.
Keep reading to discover the ten types of renovations that offer the best return on your investment.
1. Garage Door Replacement
At the top of the list when it comes to home renovations that pay off, nothing beats a new garage door.
Based on estimates that include the cost of removing and disposing of your old garage door and replacing it with a new heavy-duty door, this upgrade will set you back around $3,600. But, you can recoup over 97 percent of that cost when the time comes to sell your home.
The obvious advantage of this upgrade is that it gives your home instant curb-appeal without costing you a lot of money. As such, it’s easier to get back almost every dollar you spent on it.
2. Manufactured Stone Veneer
It might not be very glamorous, but adding manufactured stone veneer to part of your home’s exterior is a great way to unlock more value on your home.
This home remodeling project involves replacing a key section of siding – such as on your entryway – with stone veneer for a visible and instant upgrade.
Just like a bright new garage door, this accent feature is something that potential buyers are sure to notice and appreciate. And for this reason, it’s possible to recoup around 95 percent of the average $9,000 cost.
3. Minor Kitchen Remodel
If you’re keen to invest in a more extensive home remodeling project, the kitchen is the best room to turn your attention to.
Modern families spend a lot of their time in the kitchen. This makes an attractive and multi-functional space a big draw for potential buyers.
A new kitchen is also an upgrade that can boost your enjoyment of daily activities such as cooking, sharing meals with your family, and entertaining friends. As such, if you plan to renovate your kitchen, you can benefit from these advantages both while you’re still living there and when it comes to selling your home too.
A minor kitchen remodel involves an estimated cost of around $22,000. Your return on investment for this kind of upgrade can be between 60 and 120 percent but tends to be around 80 percent on average. This means for your initial outlay, as well as getting a new and improved kitchen, you can expect to sell your home for around $18,000 more.
It’s important not to go overboard though. Spending more money remodeling a house than you need to is unlikely to get you more when you sell it. So, forget anything too fancy or expensive and concentrate on details like new countertops, a new sink and faucet, a flooring update, and a fresh coat of paint.
4. Deck Addition
A big yard is already a bonus when it comes to selling your home. But, by adding a deck, it’ll be a lot easier for potential buyers to see themselves making the most of your home’s outdoor space when they move in.
That said, the cost of adding a deck varies a lot. Not only does the size affect the price, but the design and material used can also make a big difference in how much you’ll pay.
For the best return on investment, a wooden deck is the best way to go. The average cost of a 16-by-20-foot wooden deck with extras like a built-in bench and railings is around $13,300. When it comes to selling your house, you can expect to recoup around 75 percent of that cost, with an average resale increase of around $10,000.
In contrast, a composite deck is more expensive at around $19,000 on average. But the return on investment is only 69 percent, with a resale value increase of $13,200.
5. Replacement Siding
Old siding that’s seen better days can make even the nicest home look shabby. And, since it’s one of the first things potential buyers will notice, this negative first impression can drag down the perceived value of your home.
As such, while accent stone veneer on your home’s exterior offers a better return on investment, if the siding around it is old, it’s best to spend your money on updating that first.
On average, replacing 1,250 feet of old siding with new vinyl siding will cost around $16,000. With an average resale increase of about $12,000, this means you’ll recoup 75 percent of your investment.
Buyers notice this kind of home renovation as it improves the aesthetics of your home. But, as vinyl siding is fade resistant and comes with a 10-year warranty, they’ll also appreciate that it also reduces the possibility of future maintenance issues.
6. Steel Entry Door
At an average cost of around $1,800, a new steel entry door is likely to be the cheapest home renovation project there is.
But this upgrade makes a huge difference to the first impression your home gives to potential buyers. For this reason, a new door can net you as much as $1,400 more on your home’s resale value, with a return on investment of 75 percent.
Of course, a new door can set you back less than this but if you have the money, a high-quality 20-gauge steel door with glass panels and a composite stop is the best way to attract a potential buyer’s attention.
As for the color, charcoal grey or black front doors are most popular with buyers.
7. Window Replacement
Replacing old drafty windows with energy-efficient windows is a surefire way to brighten up your home while also improving insulation and reducing utility costs.
And, since many buyers look for a new home with energy efficiency in mind, this home renovation project can get you a good return on investment.
Vinyl windows are often the cheaper choice, costing around $16,800 for an average-sized house compared to $20,500 for wooden windows. By spending out less, you’re also more likely to recoup more of your investment. On average, vinyl windows increase your home’s value by $12,300, while wooden windows offer around a $14,500 increase.
And, as an added bonus, improving your home’s energy-efficiency rating might also make you eligible for a tax credit.
8. Asphalt Shingles Roofing Replacement
Replacing your roofing is a big home remodeling project with an average cost of around $22,500 for asphalt shingles. But if your roof is showing serious signs of wear and tear, it may well be necessary for you to consider this job a priority.
After all, an old roof doesn’t just look bad. The thought of having to pay for replacement roofing in the near future is also likely to put off potential buyers.
Luckily, this roof replacement offers a decent return on investment of around 68 percent. This means you can expect to increase your home’s value by around $15,500 when the time comes to sell up.
9. Bathroom Remodel
Although it’s made our list, a new bathroom can be a risky home remodeling project. This is because it doesn’t always pay off to upgrade a small room where people don’t spend a lot of time.
That said, if your home is in great shape and your bathroom is letting the side down, a remodel could prove worthwhile.
But don’t splash out on anything too extravagant like a whirlpool bath as these can actually put buyers off. Instead, go for a mid-range remodel, which should cost an average of $20,000. This can get you a return on investment of about 67 percent, or $13,700.
10. Room Reinvention
Remodeling a house to add a new room can make it more attractive to potential buyers. But often, the return on investment isn’t great.
Instead, reinventing an existing room offers a better pay-off at resale, especially if this home renovation increases your home’s number of bedrooms.
You could convert an attic or basement into a bedroom, or you could add a small apartment over your garage. A more cost-effective approach could be to divide a large, unused space to form an extra room.
Since the price of a room reinvention can vary, the resale value increase can vary a lot too. But, an extra bedroom will help your home appeal to a whole new group of buyers so it could give you a lot more options when it’s time to sell.
Remodeling Your Home
As many of these upgrades show, you don’t have to remodel a home from top to bottom to see some serious return on investment.
Often, more visible and less expensive exterior renovations are the best way to increase your home’s resale value. And, these upgrades also allow you to enjoy added curb-appeal while you still live there.
If you’re remodeling your home in preparation of selling it and move out, be sure to check out our property listings. Or, for more advice and inspiration, take a look at our blog!
Photo provided by The Radio Scout.