Today’s homeowners aren’t afraid to put some work into their properties. The remodeling industry is expected to experience 2% growth each year through 2025, with a recent survey showing that 73% of polled homeowners expect to implement home improvement projects this year alone (a 26% increase from what results from last year’s survey showed). What’s more, homeowners plan to spend an average of $9,000 in home improvement projects in 2019. But while you might not be shy about forking over your hard-earned money to invest in your home’s value, which projects will offer the highest returns on your investment? You’ll want to allocate your funds where they really count — so keep these remodeling jobs in mind when you’re trying to decide how to spend.
It might not sound like the most exciting renovation you could perform, but replacing your exterior siding can yield impressive returns upon selling your home. According to Remodeling Magazine‘s recent cost versus value report, siding replacement can nearly pay for itself. While it costs an average of $18,123 to replace, it offers a resale value of $17,420 — meaning that you could recoup 96.1% of those costs when you sell. James Hardie siding, for example, has been installed on over 5.5 million homes throughout the nation and provides the durability, aesthetics, and weather resistance to please any homeowner. And well-maintained, cedar siding can last as long as 75 years. If your current siding looks worse for wear, replacing it can instantly transform your home’s curb appeal. And while you are working on the exterior of your house, consider updating the shingles on the roof as well. Using asphalt shingles can provide decent protection from the elements for at least 12 to 15 years for a very modest upfront cost, all while improving the curb appeal of your home.
Midrange Kitchen or Bathroom Remodel
Kitchen and bathroom renovations are immensely popular among American homeowners. In fact, 10.2 million kitchens and 14.2 million bathrooms are remodeled each year. While both of these rooms are essential, keep in mind that you don’t have to go all out to benefit from these renovation projects. New cabinets, countertops, flooring, and energy efficient appliances can come with a 77.6% ROI in the kitchen, while replacing fixtures, the tub, tiles, and other bathroom features may offer an 89.6% ROI, if you do it right. Just don’t go too upscale with your choices; the higher-end you go, the less likely it’ll be that you’ll recoup your costs. If you’re remodeling with the intent to sell, rather than to stay, find a good middle ground and keep yourself from spending the utmost.
Window and Door Replacement
Don’t forget that today’s buyers want to benefit from greater energy efficiency. Window replacement can be a surprising selling point, as it can offer an ROI of anywhere from 73.4% to 89.98%, depending on the materials used. Make sure to go for insulated windows that offer energy savings and that match the style of your home. You might also consider replacing a couple of key types of doors: the front door and/or the garage door. A steel entryway door can allow you to recoup nearly 75% of your investment, while a new garage door can offer a staggering 97.5% ROI.
It’s not always easy to identify the projects that will matter most to potential buyers. After all, you’re likely to zero in on issues that might not matter to another family. But if you keep these tried-and-true renovations in mind, you’ll be able to make smart decisions that can put more money in your pocket when it comes time to sell.