Before spending money on a home improvement project, it pays to know which improvements will add the most value to your home. This is especially important if you plan to sell your home at some point. Some projects have a higher return on investment (ROI) than others. Decide where your money is best spent as a home investment.
Boost Curb Appeal for Value
If you're seeking home improvements to increase the curb appeal of your home, be sure you can recoup a large percentage of the cost before committing to any type of renovation. The following offer some of the best bang for your buck.
Garage Door Replacement
A garage door is usually located street side and has a huge impact on the curb appeal of your home. If your garage door is damaged or out of style, it's worth the investment to replace it. According to Remodeling's 2018 Cost vs. Value Report, you can expect to recoup at least 98.3% of the cost when you replace a garage door.
- Average cost for garage door replacement: $3,470
- Average resale value for garage door replacement: $3,411
You may get even more return for an upscale version. In a review of garage door replacements with an upscale garage door costing an average of $3,411, Grand Rapids Thompson Remodeling found a 106.8% return.
Entry Door Replacement
Remodeling's 2018 report states when you replace the entry door with a steel door, you can recoup 91.3% of the cost. For most homes, this would be the front door. In addition to being a smart investment, a steel door is a good security addition to your home. United Locksmith points out that a steel door is a cost-effective choice that has several grades you should consider before purchasing, including a steel door with a steel frame for added security.
- Cost for a midrange steel door: $1,471
- Resale value for a replacement door: $1,344
Value is also dependent on the region of the country and additional features like a gate. Custom Door & Gate reports that homeowners in the South Atlantic region can expect to recoup 112% for a new steel entry door with a gate.
A big-ticket item, replacing the siding can reap excellent resale value to your home. There are several types of siding for a home, including masonry veneer and vinyl siding. Depending on your budget, you can recoup between 71% and 91% of your cost in resale value. Bob Villa advises springing for a masonry veneer to transform your home curb appeal, which will give you the highest return for your investment with a 91% recoup. Remodeling reports that you can recoup 76.7% of your investment for a midrange siding replacement:
- Cost of siding: $15,072
- Resale value: $11,554
Update the Kitchen and Bath to Improve Resale
There are some interior remodeling projects that have a high resale value as well. If your interest is in having a solid return for your investment, consider undertake a minor bathroom or kitchen remodel. The key to maximizing your money is keeping the project fairly simple.
Minor Kitchen Remodel
Family Handyman points out that a minor kitchen remodel recoups the cost much better than a major kitchen remodeling project. A minor kitchen remodel can involve replacing or resurfacing the countertops, refacing cabinets, replacing the sink and faucet, and sometimes getting new appliances. This kind of remodel keeps budget in mind, allowing you to get a fresh look without rearranging the layout of the kitchen. This type of project allows you to recoup 89.4% of what you invest:
- Cost of minor kitchen remodel: $20,830
- Recouped value: $16,699
Midrange Bathroom Remodel
The bathroom, especially the master bathroom, is an important selling point for any house. Potential homeowners don't want a small, outdated bathroom. Older homes can compete with newer construction by upgrading the bathrooms in the house, and you can recoup a lot of your investment if you keep the project modest. Choose midrange surfaces and fixtures to get your money back when you sell. Remodeling reports that a midrange bathroom remodel allows you to recoup 70.1% of your investment:
- Cost of midrange bathroom remodel: $19,134
- Recouped value: $13,422
Assessing Cost vs Resale Value
While you may be inspired to tear down a wall or reconfigure your kitchen, it's best to crunch some numbers to determine the resale value of your project. The money-wise choice is to go with those projects that will improve the look of your home and offer you the higher return on investment (ROI) at the same time.