With the return of equity to many markets across the United States, more homeowners are likely to sell their houses. However, to facilitate such a transaction and maximize their return on investment (ROI), several steps must be taken into consideration. It is important to familiarize yourself with home renovations that can serve to increase the value of your property. Do not assume that every addition will contribute to a higher price tag. According to a joint study conducted by Remodeling magazine and the National Association of Realtors (NAR), not all upgrades are worth their investment.
“I always recommend making very wise use of your remodeling dollars to get a good return on investment,” says Judy Moore, a suburban Boston real estate agent and an NAR board member.
Remodeling magazine, in association with the NAR, compiled statistics associated with home renovations and how they contribute to the value of a property. The study, otherwise known as the 2013 Cost vs. Value Report, included more than 3,900 appraisers, sales agents, and brokers across the country who provided their opinions and estimates. While exterior additions dominated the list of preferable home renovations, we have taken the time to compile a list of the top projects that result in maximum ROI.
The top mid-range home renovations that will maximize your ROI are as follows:
- Entry Door Replacement (steel): The average cost to install a steel entry door is approximately $1,137. Its addition will add $974 to the resale value, resulting in 85.6% of the cost recouped.
- Deck Addition (wood): The average cost to install a wood deck is approximately $9,327. Its addition will add $7,213 to the resale value, resulting in 77.3% of the cost recouped.
- Garage Door Replacement: The average cost to install a new garage door is approximately $1,496. Its addition will add $1,132 to the resale value, resulting in 75.7% of the cost recouped.
- Minor Kitchen Remodel: The average cost to remodel a kitchen is approximately $918,527. Its addition will add $13,977 to the resale value, resulting in 75.4% of the cost recouped.
- Window Replacement (Wood): The average cost to install wooden windows is approximately $10,708. Their addition will add $7,852 to the resale value, resulting in 73.3% of the cost recouped.
- Attic Bedroom Addition: The average cost to install an attic bedroom is approximately $47,919. Its addition will add $34,916 to the resale value, resulting in 72.9% of the cost recouped.
- Siding Replacement (vinyl): The average cost to install vinyl siding is approximately $11,192. Its addition will add $8,154 to the resale value, resulting in 72.9% of the cost recouped.
- Window Replacement (vinyl): The average cost to install vinyl windows is approximately $9,770. Their addition will add $6,961 to the resale value, resulting in 71.2% of the cost recouped.
- Basement Remodel: The average cost to remodel a basement is approximately $61,303. Its addition will add $43,095 to the resale value, resulting in 70.3% of the cost recouped.
- Major Kitchen Remodel: The average cost to conduct a major kitchen remodel is approximately $53,931. Its addition will add $37,139 to the resale value, resulting in 68.9% of the cost recouped.
- Deck Addition (composite): The average cost to install a composite deck is approximately $15,084. Its addition will add $10,184 to the resale value, resulting in 67.5% of the cost recouped.
This year’s Cost vs. Value Report ended a six-year decline, as the ratio increased by three percentage points to 60.6 percent. This news is great for the remodeling industry and the housing sector as a whole.
