Renovating your home, whether you DIY or hire projects out, is one of the most satisfying parts of homeownership — and a great way to add value to your property. However, not all renovations are created equal. Some may offer a higher return on investment (ROI) than others.
You may already be thinking kitchens and bathrooms... but according to a recent report by Remodeling magazine, exterior projects are offering the highest return in 2019. Four of the top six high-return projects listed in the report are exterior replacement projects. Only the minor kitchen remodel — a relatively modest indoor project among those covered — rivals the rate of return of most exterior projects that made the list. Plus, they note, many high-end renovations are seeing a lower return on their investment for home improvement projects. According to the magazine, In fact, the more upscale the project, the lower the ROI.
Which Projects Offer the Best ROI?
With that in mind, here are the top six renovation projects (nationally) for 2019 in terms of ROI as determined by Remodeling magazine:
1. Replacing Garage Door with Upscale Door — 97.5% ROI
In general, exterior projects seemed to perform well on the list. Replacing a garage door with an upscale model costing an estimated $3,611 could earn back $3,520.
2. Adding Manufactured Stone Veneer — 94.9% ROI
By adding stone to the lower third of a home front facade and extending it over the front entry, homeowners can recoup $8,449 for $8,907 spent.
3. Minor Kitchen Remodel — 80.5% ROI
In a 200-square-foot space, a typical minor kitchen remodel can include updating cabinet fronts and drawers, replacing the stove, countertops and flooring, installing a new sink and faucet, and painting. You might spend $22,507, according to Remodeling, but you could recoup $18,123 when you sell.
4. Adding a Wooden Deck — 75.6% ROI
A wooden deck addition costs an average of $13,333 and adds $10,083 in value to your home, assuming a 16x20-foot addition. Noteworthy here is that the projected percentage of the cost you'll recoup is better — and the renovation cheaper — than if you built a similar deck using composite materials.
5. Replacing Siding — 75.6% ROI
Siding will keep weather out, lower your utility bills and provide substantial aesthetic value, but even the best siding material eventually breaks down, or suffers unexpected damage at the hands of extreme weather. Replacement will cost an estimated $16,036 and recoup $12,119.
6. Adding a Steel Entry Door — 74.9% ROI
Steel doors are commonly used by commercial property owners but also are well-suited for residential owners. They are available in smooth or wood grain textures in multiple stains and paint finishes, and come in a variety of door styles, including some with glass. If you spend an estimated $1,826 on a new door, you may recoup $1,368.
We’re here to Help
If you are thinking about doing some home improvements and need financing, contact us to explore your cash-out refinance options. Or, thinking about buying and have questions about your mortgage or readiness to buy? AAFMAA Mortgage Services LLC (AMS) is ready to assist you and we will provide you an honest and fair comparison of your mortgage options. We’re staffed by professionals who understand the military lifestyle and have lots of experience with VA loans – for buying a home or refinancing your existing mortgage.
Our mission is to ensure you obtain a low-cost and low-rate mortgage to build, buy or refinance your home even if it means doing business elsewhere. Get a free mortgage assessment today! There’s no cost or obligation.