Whether you’re considering making improvements to your home before placing it on the market or you’re a regular at flipping houses, it’s important to know which renovations offer the best return on investment.
With that in mind, here’s a list of the home improvements with the best return on investment according to Remodeling Magazine’s 2020 Cost vs. Value report.
1. Manufactured stone veneer
While curb appeal is huge when it comes to attracting buyers, the proper exterior also could make a difference in sale price. Manufactured stone veneer is a great choice in that regard.
Not familiar with it? It’s faux stone that’s designed to look like natural stone, which can be quite expensive. In fact, the average cost to put up manufactured stone veneer is $9,357, $8,943 of which you can expect to get back in resale value. That means you stand to recoup 95.6 percent of your outlay.
2. Fiber cement siding
Fiber cement siding is designed to look like wood, but it likely won’t warp and rot the same way authentic wood generally will over time. Fiber cement siding also has a more natural look than vinyl, making it a popular choice among homeowners and buyers.
The average cost to install fiber cement siding is $17,008, $13,195 of which you’ll add on average in resale value. The result? You’ll get 77.6 percent of your investment back.
3. Vinyl siding
Replacing your siding could improve your home’s value substantially, and vinyl siding is an easy, cost-effective choice. Vinyl siding not only is low-maintenance, but it also is available in a variety of colors. The average cost to install it is $14,359, $10,731 of which you can expect to add in resale value. That means you’ll recoup 74.7 percent of your cost.
4. Garage door replacement
New garage doors can add to your property’s aesthetic appeal and functionality, especially since no buyer wants to contend with outdated garage doors with mechanisms that fail every third try. The average cost to replace a set of garage doors is $3,695, $3,491 of which you should recoup at resale. That’s a cost recovery of 94.5 percent.
5. Minor mid-range kitchen remodel
Although the kitchen is one of the most popular rooms in a home, you don’t have to complete a full remodel to make a big difference when it comes to resale value.
A minor, mid-range kitchen remodel usually includes re-facing or replacing cabinets, swapping out countertops, installing new fixtures (like a sink faucet) and replacing some appliances. This will cost about $23,452, and you can expect to get $18,206 of that back in resale value. That means you’ll recoup 77.6 percent of your investment.
6. Wooden deck addition
Decks make it possible to maximize outdoor space. In fact, installing a deck can typically add to a property’s assessed value and property tax basis because it’s considered “new living space.” The average cost to install a wooden deck is $14,360, and that will generally add $10,355 of resale value to a home. That means your cost recovery is 72.1 percent.
7. Composite deck addition
Like a wooden deck, a composite deck can help homeowners maximize outdoor space. The main difference between composite and wood, however, is initial cost and ongoing maintenance. Composite decking (which is meant to look like wood but isn’t actual wood) costs much more, with the average price around $19,856.
But composite decking is virtually maintenance-free, whereas wood decking is not, so it may hold more buyer appeal. From a resale value perspective, however, you’ll get less back with composite decking. The typical job will add $13,257 in resale value to a home, which represents a cost recovery of 66.8 percent.
8. Vinyl window replacement
New windows can add aesthetic value and help improve a home’s energy efficiency, thereby lowering heating and cooling costs. The average cost to replace a house’s vinyl windows is $17,641, and the average cost recouped is $12,761. That means you’re looking at getting 72.3 percent of your investment back at resale.
9. Wooden window replacement
Wooden windows cost a lot more money than vinyl, but some homeowners (and buyers) prefer the more natural look of wood. The average cost for this project is $21,495, and you can expect to add $14,804 in resale value. That means you’ll recoup 68.9 percent of your cost.
10. Steel door replacement
A steel door is a great security feature for a home to have. Steel also can block out the elements, which helps a home retain cold air in the summer and warm air in the winter.
The average cost to install or replace a steel door is $1,881, $1,294 of which you can expect to get back in resale value. That’s a cost recovery of 68.8 percent.