How Much Are Home Renovations Really Worth?

renovations

Home renovations are commonly regarded as a way to render a property more appealing to buyers, and potentially even up the asking price. But what type of (realistic) return on investment can you expect? Due diligence with respect to research in your particular market will reveal the “true value” of popular home renovations, and help you determine if such projects are worth the effort.

Risk vs. Reward in Home Renovations

For the past 30 years, Remodeling Magazine has generated annual Cost vs. Value Reports, comparing ROI for a number of remodeling projects. A quick glance below gives insight into those most popular and the renovations rewarding the highest returns, as determined by Remodeling Magazine’s Cost vs. Value Report for 2017. (Keep in mind, the information presented here is a national average. A bathroom remodel in Boston, Massachusetts, will cost considerably more than one in Tulsa, Oklahoma, for example.)

Project                                                             Cost/Resale Value                  ROI

Popular Home Renovations

 Bathroom Remodel                                        $18,546/$12,024                    64.8%

Kitchen Remodel (minor)                              $20,830/$16,699                   80.2%

Basement Remodel                                          $71,115/$49,768                    70.0%

Wood Deck (addition)                                      $10,707/$7,652                     71.5%

Roof Replacement                                            $20,664/$14,214                   68.8%

Backyard Patio                                                   $51,985/$28,546                    54.9%

 

Renovations With the Highest Returns (Above 75.0%)

Fiberglass Attic Insulation                             $1,343/$1,446                       107.7%

Entry Door Replacement (steel)                   $1,413/$1,282                         90.7%

Manufactured Stone Veneer                          $7,851/$7,019                        89.4%

Kitchen Remodel (minor)                               $20,830/$16,699                  80.2% 

Entry Door Replacement (fiberglass)         $3,276/$2,550                        77.8%

Siding Replacement                                         $14,518/$11,093                     76.4%

Garage Door Replacement                              $1,749/$1,345                        76.9%

 

Though updating or remodeling may be crucial to selling a home, it’s always prudent to know what type of return you can expect on your investment. Maximize your ROI by committing to quality, and having a good idea of what potential buyers are looking for in their dream home.

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