The Best and Worst Remodeling Investments
Remodeling a home can raise the property value as well as making it more enjoyable to live in and more appealing to buyers. But not all remodels are created equal. Some really bring a great return on the money you spend, but others should be done because you want to enjoy them and not to improve resale value. Where should you put your remodeling budget? Take a look at these best and worst picks based on 2016 data.
These remodels give you the most return on investment based on what you’ll pay to have them done.
Insulation. Insulating your attic is the rare job that will bring back more in resale value than it will cost you to do. Energy-efficiency is an important factor to a lot of homebuyers.
Doors. Changing out both entry doors and garage doors is one of the best picks. They’ll improve your curb appeal and bring just over 90% of the cost back in resale value for a steel entry door and more than 80% for fiberglass.
Stone Veneer. Once again, this remodel improves that all-important curb appeal and will give you more than 90% back in resale value.
Minor Kitchen Remodeling. A kitchen remodel in the range of about $20,000 will bring you back more than 80% of that in resale value – better than a more expensive, major remodel.
New Siding. Replacing your siding has a return on investment of just under 80%, making it a good choice for your money.
Composite Deck Addition. Adding a composite deck will bring back about 75% of the money spent in resale value and improve the look of your home. Great outdoor living space is a major plus for buyers, but keep that deck midrange – spending too much greatly reduces the return on investment.
Window Replacement. Whether you choose wood or vinyl, you’ll get back a little over 70% on this remodel. It will also improve energy-efficiency while you live there and be a selling point when you’re ready to move.
Roof Replacement. A new roof is a big point for many homebuyers. Changing out your roof will give you a little over 70% of what you spent back in resale value.
Every remodel is going to be a selling point, but some are not a big return on investment. You might want to consider these only as they apply to your enjoyment of the home, rather than for resale value.
Adding a Bathroom. No matter how much you spend on it, adding an extra bathroom will only bring you back about 56% of the cost.
Remodeling a Bathroom. If you’re going to remodel a bathroom, don’t overspend. A midrange remodel will bring you back about 65%, while a more upscale remodel doesn’t bring as much return, only about 57%.
Adding an Upscale Master Suite. This is one of the more expensive remodeling jobs, and spending more doesn’t bring more return. A midrange addition will see about 64% return, while a more expensive remodel drops that number to 57%.
Major Kitchen Remodeling. Another expensive project, you can expect to see 61-64% back on this depending on how much money you put into it. If you’re looking for resale value, stick to a minor remodel.
Adding a Backup Generator. Unless you live in a place where power outages are a big problem, you might want to skip this one. The return on investment clocks in at just under 60%.
If you’re planning to stay in your home, resale value may not be of major concern to you, while livability of the home is a bigger priority. But if you’re looking to remodel to improve your home’s resale value, stick to the choices with a higher return on your investment.