The newest Cost vs. Value* report is fresh off the press, providing consumers with the latest data in home improvement return on investment. Once again, exterior improvements rank high on the list in terms of ROI, as does a minor kitchen and bathroom remodel. Planning a renovation project this year? Keep reading to see how much you can expect to recoup on your next project.
The projects yielding the highest return
Curb appeal type projects continue to reign supreme when it comes to funds reclaimed when the house is sold. Coming in at number one and then some is adding a manufactured stone veneer. You can actually expect to make money on this investment when you sell, recouping a whopping 120% of the cost of this project at the closing table.
Siding replacement, garage door replacement, and a fiberglass grand entrance replacement yields a 110%, 105%, and 104% return, respectively. While most realtors argue replacing an outdated HVAC unit isn’t something that you should replace before you sell, according to the report, homeowners can expect to recover upwards of 95% when they convert a gas HVAC unit to an electric one.
A new roof with asphalt shingles certainly isn’t a “fun” purchase, but it is a wise one. Typically setting homeowners back over $17,000, you can expect to recoup 86% of the cost of a new roof when it comes time to sell.
Projects with a modest amount of return
Typically the larger spend projects tend to translate into a lower return upon selling. On the higher side of this category in terms of return, is a minor kitchen remodel.
Costing homeowners an average of $27,000, with a 75% ROI, a minor kitchen upgrade consists of replacing cabinet doors with new shaker-style doors, replacing major appliances, upgrading to a modestly-priced solid surface countertop, and adding new resilient flooring.
Installing new vinyl windows also proves to be a good investment, recovering 68% later on.
a 16×20 foot deck will cost homeowners an average of 16,824, and will return 53% of that investment upon sale of the home.
A small space bathroom update–a project that once recouped nearly 63% at closing just three years ago–is now only expected to recover around 46%.
The projects yielding the lowest return
The more money you spend, the less you get back when it comes time to sell, unfortunately.
The lowest rank project on the list in terms of ROI is an upscale primary suite addition, where homeowners will spend an average of $309,000 and only recover 21.6% of the project funds down the road. Similarly, an upscale kitchen remodel will cost homeowners just over $150,000, and recoup 29% when they sell. An upscale bathroom remodel yields only 23.4% and costs an average of $104,128.
If there’s anything you can infer from this list it should be the fact that you should only make modest improvements to your home if you’re planning to sell in the immediate future. If you’ve decided you want to live in your home for a while, go ahead with the big projects and enjoy the space. It’s also a good idea to talk with your realtor about projects unique to your area and neighborhood to get a better feel for the amount of return you can expect on your investment.