If you plan to update your home before it goes on the market, you’ll want to see this new study that details some of the best home remodeling projects with the highest return on investment (ROI). Unfortunately, home upgrades don’t always guarantee a higher resale value. So, choosing carefully which projects you invest in is important to get the greatest return.
Today, we’re sharing the best home improvement projects to tackle if you want to get the highest ROI when you sell. The top two home remodeling projects have up to 200% ROI when compared to years past, according to the study, so keep reading to learn more.
Exterior remodeling projects
According to Zonda’s study of the 37th annual Cost vs. Value (CVV), “Nine out of the top 10 projects with the highest ROI were exterior improvement projects.” Needless to say, the exterior of your home is an opportunity to make a great first impression. So, it’s best to invest in exterior facelifts to make your home more appealing to buyers. Here are the best projects to tackle.
Garage door replacement
This year, the home improvement project with the highest ROI is garage door replacement. With a 194% of cost recovered, this is the number one investment homeowners should consider before they sell. Buyers are looking for updated features that also spruce up the look of the exterior.
Manufactured stone veneer
At number three on Zonda’s list, the study reveals that manufactured stone veneers on the exterior of your property can give you a 153% ROI. With a shift toward more rugged, textured, and charming aesthetics, homebuyers crave a well-kept and homely space. Just be sure to update your landscaping as well to really enhance the exterior appeal.
Grand entrance upscale
As mentioned above, the exterior of your home needs to make a good first impression with potential buyers. Moreover, a grand entrance can make your home all the more enticing if done well. If your entryway or front door needs a facelift, consider a grand entrance upscale to get a 97% ROI.
Wood deck addition
While a wood deck addition sits at number seven on the list, adding this outdoor space can give homeowners an 83% ROI, which is well worth it, in our opinion. An exterior deck is a must-have for many homebuyers and can be a selling point for families who love to entertain or relax outdoors.
Interior home improvements
While many of the top remodeling projects focus on exterior improvements, there are a couple of decent interior home improvement projects worth noting.
Minor kitchen remodel
Minor kitchen remodels such as painting cabinetry, replacing backsplash, or adding new appliances saw a 96% ROI, according to the study. Full kitchen remodels didn’t have the same ROI, so it’s best to focus on updating any severely out-of-date kitchen features rather than investing in a full-scale remodel. According to the study, a kitchen remodel averaging around $27,000 will see a better ROI than a more expensive remodel.
Bathroom remodel
A mid-range bathroom remodel, averaging around $25,000, did make the top 10 in the study’s list. With an ROI of 74%, a bathroom remodel could help you improve your home and make it more appealing to buyers.
ROI remodeling project changes from last year
“The average values of the top two projects — the garage door and steel entry door replacements — are worth double what they were last year,” said Remodeling regarding the study. “These ‘hot returns’ are the highest in the history of the Cost vs. Value report.”
For homeowners seeking to make the greatest return on investment possible, you don’t want to pass up these home improvement projects when selling this year. There is speculation that these ROI statistics could be due to “the unique market for existing homes we have in today’s economy with a combination of higher mortgage interest rates and existing homeowners sitting on loads of equity.”
Location matters for home improvement ROI
Another consideration for homeowners looking to partake in some home improvement projects is location. When realtors talk about selling a home, they often stress “location, location, location.” The study states, “The Pacific region offers the highest returns, followed by New England.” It’s also noted that regions in the East North Central and East South Central saw the lowest ROI for home improvement projects. So, it may be best to take this into consideration before investing in a remodel.
Improving your home by renovating can be a great way to enhance the appeal of your property when it comes time to sell. However, not every project is equal. This year, exterior upgrades are more favored than interior overhauls. So, if you’re wondering how to invest your money prior to selling, consider giving your exterior a facelift.
