7 Home Improvement Projects with the Most ROI
Home values typically creep up over the years and have recently experienced a surge thanks to limited inventory in the real estate market. According to Realtor.com, the median home listing price in 2021 has jumped 8.6% compared to the previous year. That’s great news for homeowners, whose property values are directly impacted by these numbers.
It’s also possible to improve your home value even more with some strategic remodeling projects. But not all updates result in a dollar-for-dollar increase in your property value. Here are the best projects to consider that come with the greatest return on investment.
1. Minor bathroom updates
Taking on a minor bathroom project can really be a win-win: HGTV estimates an ROI of 102%, plus you get to enjoy the fruits of your labor. You don’t even need to implement major changes like blowing out walls and reconfiguring the entire space. Simply upgrade what’s already there, like upgrading the shower, sink, fixtures, and flooring. If you were to spend $10,000 on your project, you could boost your home value by as much as $10,200.
2. Upgrade your garage door
Swapping out a tired old garage door with a quality model is a project that comes with some serious ROI. You can expect about a 94.5% return on investment, according to FreddieMac. That means if you spend $1,500 on a new garage door, you can expect to add around $1,417 to your property value. It may not be the most exciting home improvement project, but potential buyers will appreciate it as something they don’t have to do themselves.
3. Minor kitchen upgrades
Who wouldn’t love a refreshed kitchen? Just like a minor bathroom remodel, some minor updates to your kitchen could be enough to boost your property value without having to shell out $50,000 or more on a major renovation. If your budget is closer to $15,000, focus on things like new appliances, countertops, cabinet refinishing, and flooring. ROI estimates range between 72% and 98.5%, meaning your home value could increase between $10,800 and $14,775 once the project is finished.
4. Replace siding
Updating your siding adds a layer of protection to your home and gives it great curb appeal if you plan to sell in the near future. Plus, rotted siding can be a major red flag on a home inspection report and you may have to replace it anyway in order to move forward with a buyer. Save yourself the trouble of negotiating by replacing the siding on your own terms. ROI returns can range anywhere between 74.7% and 95.5%
5. Add a deck or patio
Deck popularity is in the midst of a surge, with homeowners viewing their outdoor space as an extension of their home’s interior. One study revealed that 69% of architect firms have experienced a surge in demand for decks. Plus, you could see a return on investment of about 90% when you add a new deck or patio to your home’s exterior.
So how much do you need to spend on this type of project? The average new deck costs between $4,000 and $11,000 but the actual cost will vary a lot depending on the size and the materials you choose. You could see your property value rise anywhere from $3,600 to $9,900. The average patio costs anywhere from $2,000 to $8,000, giving your home value a boost of between $1,800 and $7,200.
6. Add new windows
Getting new windows installed is a great investment decision, either for yourself or for future homeowners. Replacing older models can drastically improve your heating and cooling bills, in addition to bringing a 90% ROI. Expect to spend at least a few hundred dollars on each window, with high end models costing as much as $2,000 per unit. Assuming you spend an average of $600 per window for 10 windows (for a total of $6,000), your property value could go up by about $5,400.
7. Convert an attic into a bedroom
Instead of using your attic as a home for Christmas decorations 11 months out of the year, take advantage of that space by converting it into an extra bedroom. It could even double as a home office if you don’t need it as a bedroom year round. However, this can definitely become a costly project, especially if you want to add plumbing for a bathroom.
A realistic budget for a simple bedroom conversion would be between $4,600 and $16,400, according to Angi.com. The anticipated ROI is 73%, adding $3,358 to $11,972 to your home value. But there’s another major benefit that comes with an attic conversion if you plan to sell your house soon: you open your home up to an entire new category of buyers with a specific minimum bedroom requirement.
Taking on a home improvement project requires time and money, but choosing the right upgrades can have a major impact on your property value. Whether you want to increase your equity or sell sometime soon, you’re sure to enjoy the final product knowing you made a smart investment in your home.