Top Home Remodeling Projects that Yield the Biggest Return on Investment
As the real estate market continues to recover, homeowners find that the value added by home remodel projects holds steady. According to Remodel Magazine‘s January 2017 Cost vs. Value report, this year saw some modest gains in return on investment (ROI) compared to 2016. Many of the projects analyzed showed slight increases in value, and a few–while not changing much–continue to have strong ROIs. Factors such as geography and timing play a role in which projects score the highest each year, but in general those that create curb appeal, such as new entry doors, are big winners, and those that involve replacing something that is broken get high ratings from realtors. As a general rule, the less expensive and complex the project, the higher the ROI (and net savings) will be when you sell the home.
Are any of these top eleven home remodel projects offering the biggest returns on investment on your home’s bucket list?
1. Minor Kitchen Remodel – 80.2%
This may include upgrading fixtures and replacing old appliances.
2. Entry Door Replacement – 76%
Upgrading to a steel, maintenance- free door is a relatively inexpensive project with a high ROI.
3. Deck Addition (Wood) – 71.5%
Wood is less expensive than composite, so the ROI is higher for a wood deck.
4. Two-Story Addition – 71%
Though a major remodel, adding a second story dramatically increases your home’s square footage and will increase the selling price as well. Be sure to keep in line with comparable homes in your area.
5. Basement Remodel – 70%
Finishing a basement also adds usable square footage to your home, as well as possibly a bathroom or other amenities that will boost resale value and add to your investment.
6. Family Room Addition – 70%
Similar to finishing a basement, a family room addition increases usable square footage and is a popular feature in today’s homes.
7. Universal Design Bathroom – 68.4%
Universal design in bathrooms (and throughout your home) increases the number of potential homebuyers for your property by making it accessible to those with limited mobility.
8. Major Kitchen Remodel – 65.3%
The ROI is significantly less for a major remodel because of the increased cost.
9. Deck Addition (Composite) – 65.2%
While composite requires less maintenance and is less susceptible to the ravages of Mother Nature, the initial cost is higher, making the return on investment lower than it is for wood.
10. Bathroom Remodel – 64.8%
Because home prices remain high, realtors confidently score more expensive projects such as major bathroom remodels and the last item on our list, master suite addition, high on potential value at resale.
11. Master Suite Addition – 64.8%
Unless you are remodeling your home for the purpose of selling it within a year of the time you complete the work, the ROI may not be a big factor when you do sell. Some projects, however, will be worthwhile regardless because they will improve your enjoyment and quality of life in your home.
