One of the great things about owning a home is that it’s an investment. The money you put into your home is money invested toward your future. One way you can increase the value of your home is by completing home renovations. Not only that but investing in home improvement can enhance your quality of life while you are in the home.
If you don’t have a particular plan to renovate your home, you may be trying to figure out a financially savvy place to start. To help you decide, we’ve done the research. Here’s a guide to seven of the top home improvements which can help you get your best return on investment. We’ve also categorized them to help you sort through the types of remodeling projects you might be interested in, ranked by ROI.
This information comes from Remodeling.com, which curates detailed information about the national average cost and ROI from home improvement and remodeling projects. All statistics are based on 2020 data.
Outdoor Improvements
Sometimes, a little goes a long way when it comes to remodeling. Enhancing the outside appearance of your home can leave a lasting first impression. This can help with curbside appeal and may sell your home faster if you are moving soon.
1. Replace home siding with stone veneer
Replacing areas of your siding with stone veneer is an affordable project that can significantly transform your home’s appearance.
Of all the projects listed here, it has the highest return on investment, with 95.6% of the costs recouped on average. The average job costs just $9,357.
2. Replace your garage door
Replacing your garage door can not only improve its functionality but depending on the style of door you install, it can drastically change the façade of your home.
On average, 94.5% of the costs of this project – which are just $3,695 – are regained on resale.
3. Rejuvenate existing siding
Replacing existing siding with new siding is a fairly inexpensive project with a relatively high ROI. Depending on whether your siding is fiber-cement or vinyl, the cost and ROI of this home improvement can vary.
For fiber-cement, the average cost is $17,008, and the average ROI is 77.6%. For vinyl siding, the investment is lower, but also the ROI is lower, with an average cost of $14,359 and an ROI percentage of 74.7%.
Room Remodels
Most homeowners are interested in enhancing the indoor functionality of their space, but this can require a lengthy process with a hefty price tag. The cost and return on investment also depend on whether these remodels are minor or major.
1. Kitchen
Carrying out a mid-range, minor kitchen remodel is the best investment in terms of indoor home improvements.
This usually includes replacing cabinet fronts and hardware, upgrading the oven and refrigerator with energy-efficient models, and installing a new sink. New flooring can also be added in this price range, and the wall and ceiling paint can be re-done. This will cost approximately $23,452 and enable you to recoup 77.6% of the costs.
The more dramatic and major your kitchen renovations are, the less money you can get back on your investment.
For example, a mid-range major kitchen remodel might include all of the things laid out above plus new custom cabinets, microwave, dishwasher, garbage disposal, and custom lighting. This will run on average $68,490, of which you can recoup 58.6%.
2. Bathroom
Bathroom remodels have a lower ROI than kitchen remodels but follow the same pattern. The mid-range bathroom remodel will get you the most money back, with an upscale bathroom remodel costing more money for a lower ROI.
A mid-range bathroom remodel will likely include updating all fixtures, installing new tile and bathtub, replacing your shower controls, replacing the toilet and vanity, and re-doing ceramic floors. This will cost an average of $21,377 and get you back 64.0% on resale.
Additions
Depending on the scale, additions can be the most expensive type of remodeling. If you are adding a room, the level of luxury you pay for will affect your ROI for this home improvement project.
1. Add a deck
Unlike adding an interior room, adding a deck is a relatively affordable addition. On average, adding a wood deck will cost $14,360 and get you 72.1% of an ROI. For a slightly higher price tag, adding a composite deck will cost you $19,856 and get you 66.8% back.
2. Add a master suite
Adding a master bedroom with an ensuite bathroom is one of the most expensive investments, and also has one of the lower ROIs on this list.
For a mid-range master suite addition, you will pay an average of $136,739, but recoup just 58.5% of this. If you choose to go for a luxury master suite – for example, one that might have a partitioned toilet area, soundproofing, in-floor heating, and lighting controls, this will cost you upwards of $282,062, with just a 51.6% ROI.
Funding Your Home Improvements
Keep in mind that the home improvement projects discussed here are based on national averages. There are always less expensive ways to improve your home and get a great ROI whether the project is big or small!
Naturally, once you’ve decided on the type of remodeling you want to pursue, you will likely need to find a way to finance it. This is especially true if you opt for one of the more expensive remodeling projects.
Find out more about your options for home refinancing or using the equity in your home by clicking below!