When you are considering remodeling or upgrading your home, it is helpful to know what projects will give you the best return on investment (ROI).
CNN Business reports that it’s important to know what you can expect to recoup from those upgrades and improvements and what will eventually pay off when it comes time to sell. Homeowners that over-renovate a home may not get the cost of the improvement back.
For example, it’s not the spa-like bathroom or the magazine-worthy custom kitchen that provide the best return on investment, according to a new report on the impact of home remodeling from the National Association of Realtors and the National Association of the Remodeling Industry.
Some renovations or upgrades can be low cost and very effective. Take, for example, refinishing or installing new hardwood flooring, painting, or replacing old gutters or a leaky roof.
According to Remodeling magazine’s annual analysis of cost versus value, a kitchen “face-lift” — painting, refinishing surfaces, and upgrading appliances — will return more than a full redesign.
Where to Spend
“People buying a house look first at kitchens and baths,” says Kermit Baker, director of the remodeling futures program at the Joint Center for Housing Studies at Harvard University. So while these rooms can be the most costly to redo, they’re more likely to pay for themselves. Adding rooms, such as a family room or master suite, also tends to fare well at resale time: Bigger homes command higher prices.
The key to spending less is spending it wisely. “If you take $20,000 and spend it judiciously on a kitchen, you can make it look a million times better,” says Remodeling senior editor Jim Cory, who supervises the survey. “The design and product selection are key.”
10 Best ROI Home Improvements
Fortune Builders states these are the 10 best return on investment improvements.
- Minor Bathroom Remodel: Returns an average of 102%
- Landscaping: Returns an average of 100%
- Minor Kitchen Remodel: Returns an average of 98.5%
- Attic Bedroom Conversion: Returns an average of 93.5%
- Major Bathroom Remodel: Returns an average of 93.2%
- Major Kitchen Remodel: Returns an average of 91%
- Entry Door Replacement: Returns an average of 90.7%
- Deck/Patio/Porch Addition: Returns an average of 90.3%
- Basement Remodel: Returns an average of 90.1%
- Replace Windows: Returns an average of 89.6%
Get Good Advice
If you would like a second opinion, even if you are not interested in selling your home anytime soon, Tucker Benner Realty is happy to help. Our trained professionals know the local market and what regional improvements will make differences in value. Just call or text 231-730-8781.
Marilyn Tucker
