Which Renovations Add The Most Value?
Whether you bought a fixer upper, looking to start flipping homes, or are just interested in updating your home, then this article will help you navigate which projects will give you the best return on your investment. Ever since COVID hit, more and more homeowners have been taking on projects left and right. Home Depot and Lowes have been busting at the seams, even though we have a would crisis on our hands. But before you run out and start taking down walls or remodeling bathrooms, here are the top 6 home renovations that add the most value according to Bankrate.com
Manufactured stone veneer
Stone Veneer will cost you between $8-$10,000, but return you 96% of the costs. This increases the value of your home by 2-3% depending on where you’re located. Replacing vinyl siding with stone veneer on part of your home, such as an entryway or the whole front of your house, is a big curb-appeal upgrade. The average cost estimate is based on factors such as installing 36 linear feet of sills, 40 linear feet of corners and one address block, and materials including two separate layers of a water-resistant barrier and corrosion-resistant lath and fasteners. This cosmetic improvement and accent design element is likely to catch the eye of a potential buyer
Garage Door Replacement
Replacing your garage door or doors will cost you anywhere from $3,500-$7,000 with an average return of %95. A good-looking garage door is high on the list when it comes to getting cash back on your investment. The estimate for this job is based on the cost of removing and disposing of an existing 16-by-seven-foot garage door(s) and replacing it with a new four-section garage door with heavy-duty galvanized steel tracks, and assumes you’re reusing the motorized garage door opener. When people drive up the block and see your stone veneer and new garage doors, you can bet it will draw massive attention.
Kitchen Remodel
Remodeling your kitchen is one of the most common remodels, creating a ton of value, and I don’t just mean monetary. Yes, you will spend on average $20-$25,000 to accomplish this, however, almost 80% of that will be returned to your pockets and sometimes more. It can boost your enjoyment of everyday activities like cooking, entertaining friends and sharing meals with your family.
Potential buyers also see the intrinsic value of this kind of upgrade. In a remodeling project of this kind, you might replace appliances with new, more energy-efficient models; reface cabinets with new shaker-style wood panels; install new countertops and a new sink and faucet; replace hardware; add new flooring and repaint the walls.
Siding replacement (fiber-cement/Vinyl)
Complementary to adding stone veneer, replacing old, dilapidated siding with fiber-cement or vinyl, can make the rest of your house pop. Your average cost will run you $17,000 for fiber-cement, and $14,500 for vinyl, and return you 75-78%. Most of all, your house won’t be the eyesore of the block going further. This cost is based on 1250sqft of home exterior.
Window replacement (vinyl)
While old wood windows give you nostalgia, they are not efficient this day in age. Window replacement is a job a homeowner can do with a few tools and some time on the weekend. If you’re hiring a contractor you’re looking to spend between $16,000 and $18,000 for an average size house. You could recoup around 72 percent of the cost to replace your current windows if you install low-E, simulated-divided-light vinyl windows that feature a custom-color exterior finish. (Low-E means low emissivity, an energy saver.) You’ll want to ensure that the trim exterior matches existing ones, and the interior trim is left untouched.
Outdoor Structures
Outdoor structures such as: decks, fire pits, and pools can bring a lot of extra enjoyment and usable entertaining space to your home. Depending on how much upkeep these projects will cost you will determine the return on your investment. New home buyers are always looking for outdoor activities when buying a home.
Fences: A new fence will add more privacy and keep kids and pets safe. It will increase your curb appeal and provide stability.
Deck: Decks are not cheap investments, but will eventually pay off. It will make a home buyer feel like they have more usable space, especially if they have a big family. Depending on the material, size, and scope of the project, you can see upwards of an 80% of the price of the deck reflected in the new value of the home.
Fire Pit: Fire pits are a nice, cozy way to increase the usability of your yard in the cooler months. It allows friends and family a place to tell stories and share memories as well as create new ones. This will add real value for potential buyers.
Swimming Pool: While pools are great for enjoying the weather and hosting parties, you won’t see a monetary return on your pool investment once you factor in all the extra costs to maintain it. If you’re thinking of adding a pool for a return on investment, then think again. Install the pool if you’re planning on putting down roots in the home. This will last for years and provide a backyard osais.
Bathroom remodel
Like kitchen remodels, bathroom renovations are one of the most popular home improvement projects by homeowners today. You can expect to recover 75% of your investment in exchange for $2,500-$10,000 depending on full or half baths. Replacing an outdated vanity, old plumbing, lighting fixtures, a new tile floor, and some paint or wallpaper, will guarantee a lot of bang for your buck and give your bath an updated, modern look.
If you are considering a full bathroom remodel, you will be looking at changing the flooring, the vanity, shower, tub and toilet. Make energy efficient updates, as they will be good for your home’s resale value.
Using KERDI-BOARD is brilliant because it creates a continuous line of moisture resistance, helping prevent mould issues. Adding a high quality, uncoupling and waterproof system below your tiles is also an absolute must if you want your renovation to last. If you want to go above and beyond, adding a heated floor is an especially nice selling point.
There are a lot more renovations that can add value, however, these are the top 8 of 2021 according to Bankrate and DIY network. In our experience at Temprano Construction, these are the projects that most homeowners want to complete. If you’re flipping a home, I would focus on bathrooms, kitchens, painting, and flooring. You can also check out my article on house flipping for more details.