Renovating this year? Here are 6 home improvements that pay off big time when you sell
Thinking about renovating areas of your home soon? Don’t waste your time with projects that won’t yield ROI when it comes time to sell— here are the best and worst home improvement projects in terms of return on your investment.
The best home improvement projects
Each year, Remodeling Magazine puts out a cost versus value report, that helps homeowners understand the average cost per project and how much of their investment can be expected to be recouped when it comes time to sell.
#1 Garage Door Replacement
Coming in at the number 1, replacing an old garage door for a new one yields a 96% return on your investment when it’s time to sell— talk about a good choice! You can expect to spend about $3,600 on a carriage-style 16X7 garage door.
#2 Kitchen remodel
It’s no secret that kitchens and bathrooms sell homes, so it comes as no surprise that a kitchen remodel yields a good return when you sell your home. Costing an average of $23,000 for a minor kitchen remodel, you can expect to recover about 78% of your investment.
On the other hand, if you’re planning for a full gut job, a major kitchen renovation can run upwards of $129,000 and you can expect to recoup around 53% of your investment.
Because of the huge cost difference between a major and minor kitchen remodel, experts say to stick with a smaller remodel if you plan to sell in the next few years. On the other hand, if you plan to stay in a home for 7-10 more years, a major remodel might make more sense.
#3 Siding replacement
Returning an average of 77% of your investment, replacing old siding is a solid investment. Not only can you expect to recoup much of your costs associated with this project, but you’ll delight buyers from the moment they view your home— there’s nothing worse than bad curb appeal.
#4 Adding a deck
Impressive outdoor spaces sell homes almost as much as indoor spaces that wow. If your home desperately needs a deck, consider adding one to increase your overall market value. Wood decks cost an average of $14,000 and recoup around 72% of investment when it comes time to sell. Thinking about putting in a composite deck instead? Data shows wood decks recover slightly more of their investments, showing that composite decks can expect to return 68% of their investment.
#5 Bathroom renovation
These days, everyone is searching for that updated, sparkling clean bathroom. The average homeowner will spend about $32,000 renovating the owners’ suite bathroom and can expect to recover about 61% of that investment when they sell. Because the investment of renovating a bathroom is on the more expensive end, make sure you choose a style that fits most tastes. Opt for a large, walk-in shower, wood cabinets, wood or stone floors and nice finishes.
Home improvement projects that don’t yield as much ROI
While a backyard patio is a wonderful addition to a wooded yard, turns out it doesn’t return as much as some other projects do when it comes time to sell. Expect to spend about $54,000 and recoup only 47.6% of your investment. Consider a backyard patio project if you’re planning to stay in your home between 5-7 years or longer.
Owner’s suite addition
While more space is always welcome, an owner’s suite can run homeowners a staggering $136,000 and only recovers around 58% when it’s time to sell. If you need more space, consider adding an owner’s suite addition if you plan to stay put for a decent period of time.
While replacing an existing entry door with a grand entrance door with dual sidelights can improve the overall look of your home, it doesn’t recover too much of your investment. If you complete this project you can expect to recoup about 53% of your investment.
Who doesn’t want more bathrooms? While no one can argue that too many bathrooms are a bad thing, adding a bathroom doesn’t bode well for your checkbook, come selling time. Bathroom additions cost an average of $49,000 and recover only 54% when you sell your home.