Homeowners are always thinking of home remodeling projects to meet new needs and get more enjoyment out of the house. Home renovations cost money, though, and you must ensure that the project is worth what you are spending on it.
The best home remodeling projects have the highest return on investment (ROI). This means that they increase the home’s value equal to or more than the amount you spent on them. If you sell your home, the projects pay for themselves or even earn you a profit.
Some projects may not pay for themselves 100%, but an ROI of not less than 70% is good enough if you really need and want them. That means 30% of what you spend pays for the enjoyment you get out of the improvement, while the increased value of your home will cover the 70%.
Not all home improvement projects have the same ROI. As a homeowner, you must know the difference before deciding what to do.
Factors That Affect a Home Remodeling Project’s ROI
Location
The value of your home depends on your neighborhood and similar homes in your community. If you add a home improvement project that is too expensive, it will not raise the value of your home higher than the uppermost price range in your area. This can, therefore, be a losing proposition.
If you do not live in a high-end area, add-ons such as a hot tub, a pool, a home theater, a wine cellar, a backyard sports court, and other luxuries will not translate into a higher home price. If you really want them, you must accept that you will be shouldering all the cost.
Timing
Home remodeling projects that are classic and have long-term value, such as adding a room or a bathroom, are more likely to have a higher ROI. They will make the home more attractive to future buyers.
On the other hand, trendy improvements can get outdated after several years and make the house less desirable to future buyers. For instance, there was a time when it was trendy to have wood paneling on the walls or to cover the walls in damask wallpaper. When these homes are up for sale now, buyers will find these outdated.
Home Remodeling Projects with the Highest ROI
Go for home remodeling projects with the highest ROI. Here are some of them.
Minor Bathroom Remodeling (102% average ROI)
The average cost for this project is $10,500, with an average return of $10,700. The price includes new flooring, tiles, toilet, tub, sink, vanity, and light fixtures.
The bathroom is one of the first things that homebuyers check out. It is also one of the deciding factors when they make a purchase.
Landscaping (100% average ROI)
The average cost for this project is $4,900, and you get a full return on your expenses. The price includes sod for a lawn and flowering plants.
An attractive curbside is always a plus when selling a home. Make sure to maintain your landscaping or hire a professional to maintain it to protect your investment.
Minor Kitchen Remodeling (98.5% average ROI)
The average cost for this project is $15,000, with an average return of $14,600. The price includes a new range, wall oven, sink, and fixtures. It also includes cabinet and drawer refacing.
You can lower the cost by sanding and repainting cabinets and drawers instead. You can also cover them with removable self-adhesive wallpaper.
Attic Conversion to a Bedroom (93.5% average ROI)
The average cost for this project is $39,200, with an average return of $36,700. The price includes complete refinishing the walls and floor, dormer windows, a full bathroom, and bedroom furniture.
Having an additional bedroom will please homebuyers. Ensure that the attic is adequately insulated.
Major Bathroom Remodeling (93.2% average ROI)
The average cost for this project is $26,000, with an average return of $24,300. The price includes extending the bathroom, retiling, and having a new tub, shower, toilet, sink, fan, and linen closet. It also includes new faucets and lighting.
Do this in the master bath for maximum benefits. Homebuyers will love a spacious bathroom for the master bedroom.
Major Kitchen Remodeling (91% average ROI)
The average cost for this project is $43,900, with an average return of $39,900. The price includes vinyl flooring, an island, laminate countertops, a sink, cabinets, a wall oven, and other kitchen appliances.
Open up a closed kitchen into an open plan that is more flexible and modern. It will make the home look more spacious.
New Entry Door (90.7% average ROI)
The average cost for this project is $1,410, with an average return of $1,280. Ensure that the door you choose matches the overall style of the house.
The entry door has a strong impact on homebuyers. Maintain it to look good through the years.
Adding a Deck, Patio, or Porch (90.3% average ROI)
The average cost for this project is 11,000, with an average return of $10,000. The price covers an area of 16×20 feet with a shade.
Homebuyers will appreciate having outdoor living space. If you add outdoor furniture, choose ones that are durable and can withstand your weather.
Basement Remodeling (90.1% average ROI)
The average cost for this project is $51,000, with an average return of $46,000. The price includes a bathroom, new flooring, and a wet bar. If you do away with the bar, you can cut the cost.
This is an all-purpose room that homebuyers can turn into anything they want. It will definitely be a plus.
New Windows (89.6% average ROI)
The average cost for this project is $9,700, with an average return of $8,700. The price includes ten windows measuring 3×7 feet.
Check out energy-efficient windows with heat-reflecting glass. This will save on cooling costs in the summer, and homebuyers will appreciate that.
Remember that to ensure the best work quality. You must always get a reputable and experienced professional contractor for any home remodeling project. Contact H.E. Feldman & Son for excellent craftsmanship and unparalleled customer service.
