When a customer asks us about the return on investment (ROI) on a remodeling project, our typical response is to ask about their motivation for remodeling their home. For some people, quick remodeling projects are something they do right before listing their house, and a remodel is done for the purpose of improving their home’s market appeal. For others, a remodeling project is something they do to enjoy the home while they’re living in it – creating their perfect spa-like master bath or making their kitchen dreams come true. For those most interested in getting the biggest bang for their buck (and for those curious how their remodeling projects will affect their home’s market value), here is a list of the top remodeling projects with the biggest return on investment.
Garage Door Replacement (98.3%)
Perhaps not the most glamorous home remodeling project and likely not the one you’ve been dreaming of, but you will recoup 98.3% of every dollar you spend on replacing your garage door. Why? Most people use their garage door more than their front door, which means it’s getting a lot of wear and tear, day in and day out. A garage door replacement serves a real functional need. The garage door is also the first thing most homebuyers see when they pull up to a house, so replacing the garage door with something a little more upscale will make a great first impression. In fact, homes with updated garage doors will tend to move more quickly on the housing market than those without. Be sure to select a garage door that pairs nicely with your home’s style and décor to get the best impact from this remodeling project.
Manufactured Stone Veneer (97.1%)
A fraction of the cost of natural stone, manufactured stone veneer is engineered stone designed to look like its more expensive counterpart. It’s no surprise that the biggest reason it has a staggeringly high ROI of 97.1% is because of the effect it has on your home’s curb appeal. Manufactured stone veneer gives your home a warm, rustic appearance that catches the eye of anyone passing by, without costing you a fortune in time or money. Stone veneer is significantly lighter than stone and markedly easier to install, which gives it a much broader range of applications. Install it on the base of your porch columns to give your home’s entrance a stately appearance. Use it to make your landscaping walls more elegant. Even on the interior of your home, the possibilities are endless for maximizing on the aesthetic appeal stone veneer has to offer.
Entry Door Replacement (91.3%)
Like the top two remodeling projects that have the biggest ROI, replacing the entry door contributes significantly to your home’s curb appeal. A new steel entry door is relatively inexpensive – with high-end models topping out around $1,500 – and easy as pie to install. From a homebuyers perspective, though, a new entry door makes a lasting first impression. Nothing says “welcome home” like a clean, sparkling steel door that offers outstanding insulation and upgraded security.
Wooden Deck (82.8%)
While not the least expensive of those remodeling projects with the biggest ROI, a wooden deck addition to your home is well worth the investment. When looking at homes, most buyers are searching with a mind to which will provide the best environment for entertaining, even if they rarely host gatherings. A wooden deck means a place for summer picnics and barbeques, a comfortable space where they can watch fireflies and fireworks. If your home doesn’t have a deck, potential buyers are already planning for the cost of installing a deck and subtracting that from what they would be willing to pay for your home. We recommend installing a deck, even if you’re not looking to list your home anytime soon. A home is meant to be lived in and enjoyed, not just resold. A deck not only improves your home’s market value, but it makes it more of a home for you while you’re living in it.
Minor Kitchen Remodel (81.1%)
The kitchen and the master bathroom are the two rooms that really sell a house, so it stands to reason that one of the best remodeling projects with the biggest ROI would include a minor kitchen remodel. What’s the difference between a minor and a major kitchen remodel, you may ask? A minor remodel updates the fixtures in your kitchen – new cabinets, flooring, countertops or appliances – while a major remodel creates a new space, gutting the kitchen down to the studs and making changes to the layout of the kitchen as a whole. When homebuyers are considering your list price, they are comparing it to what you paid, however many years ago, and what you’ve invested to update the home. Kitchen updates are among the most important in this consideration. As with the deck, if you haven’t updated your kitchen, your potential buyers are calculating the cost of replacing the outdated fixtures in your kitchen and subtracting it from their offer price.