Every year thousands of homeowners will ask: which home improvements offer the best resale value? What are some affordable projects to increase property value?
Although there are many things to consider like location and property type, cost vs. value should be a top consideration. Because while there are many home renovation projects, not all of them offer a positive return-on-investment when it comes time for resale.
So if you’d like to maximize the value of your property, it’s important to be smart about the projects you select.
Using Remodeling Magazine’s 2018 Cost vs. Value Report, we've outlined the exact improvements you should prioritize around your home to get the most bang for your buck.
Starting with #5, here are the home improvements that offer the best resale value in 2018:
5. Minor Kitchen Remodel
Resale: 81% ($17,000)
When thinking about home improvement, the first place many people start is in the kitchen.
This is one of the most used rooms in a home, and if you’re trying to increase the equity in your home, remodeling your kitchen is a project that will definitely pay off.
Sal Alfano, of Remodeling Magazine, says kitchens are “the big, sexy rooms that new home builders splurge on, so when buyers are shopping around that's what they want in an existing home, too."
Now, there's no need to do a complete overhaul. A minor remodel involving the front panels of your cabinets, energy efficient appliances, countertops, and a new sink and faucet should do the job. If you spend the average amount on a project like this - approximately $21,000, your resale value would increase by around $17,000.
So on top of a beautiful, updated kitchen, you'll recoup 81% of the cost. Not bad!
How to do it:
In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new shaker-style wood panels and drawer fronts, including new hardware. Replace combination cooktop/oven range and slide-in refrigerator with new energy-efficient models. Replace 30 linear feet of laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.
4. Deck Addition (Wood)
Resale: 83% ($9,000)
The next home improvement you'll want to seriously consider is a deck addition (wood).
This renovation job, on average, costs around $11,000 and with an average return of 83%, you can expect to see around $9,000 when it comes time for resale.
There are a few factors to keep in mind though. Location, design, and material will all impact the total return significantly. If you live in warmer climates, a deck might obviously be valued higher than in colder regions. And as far as material, wood offers the highest ROI, compared to composite.
In addition to a functioning space for entertaining, the deck also has to be attractive. For this, take into account the size, shape, and color of the deck, as well as the wood type.
How to do it:
Add a 16-by-20-foot deck using pressure-treated joists supported by 4x4 posts anchored to concrete piers. Install pressure-treated deck boards in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing system using pressure-treated wood posts, railings, and balusters.
3. Entry Door Replacement (Steel)
Resale: 90% ($1,300)
Replacing your front door is an underrated, but worthwhile investment in your home.
The front entryway is often the first part of your home people will see, so if you're looking for a smart home renovation project--look no further. This project will give your home’s curb appeal a huge boost but keep in mind, color, material, and design will all once again affect your ultimate return.
We recommend a 20-gauge steel door with clear dual-pane half-glass panels, jambs, aluminum threshold with composite stop, and factory finish on both sides, for maximum ROI. With a 90% cost recuperation, a steel entry door typically costs around $1,500 and generates a resale value of around $1,300. This small renovation is actually the lowest cost project on our list, but will transform the entire look of your home, improve energy efficiency, and up your home’s security, making it an all-around great investment!
How to do it:
Remove existing 3-0/6-8 entry door and jambs and replace with new 20-gauge steel unit, including clear dual-pane half-glass panel, jambs, and aluminum threshold with composite stop. Door is factory finished with same color both sides. Exterior brick-mold and 2.5-inch interior colonial or ranch casings in poplar or equal prefinished to match door color. Replace existing lockset with new bored-lock in brass or antique-brass finish.
2. Manufactured Stone Veneer
Resale: 97% ($8,000)
Another smart option for a home renovation project is a manufactured stone veneer.
So many people dislike the cheap vinyl siding that many new homes are using. A great way to change up your home's looks is adding a stone facade. Stone has long been the mark of upscale and elegant homes, as natural stone looks very pricey. However, you can get a nice new facade with engineered stone, which mimics natural stone very well, but at a much more reasonable price point. This renovation can be tailored to fit any home’s style, like rustic, chic and modern.
Additionally, a manufactured stone will place less weight and stress on your home’s frame and foundation, making it ideal to add to an existing house. Remodel Magazine says a manufactured stone veneer, on average, costs around $8,200, and with 97% of the original cost recouped on average, you can expect to see around $8,000 at resale.
How to do it:
Remove a 300-square-foot continuous band of existing vinyl siding from the bottom third of the street-facing façade, beginning at the garage, continuing around the main entry, and ending at the corner of the side addition. Replace with adhered manufactured stone veneer, including 36 linear feet (LF) of sills, 40 LF of corners, and one address block. Installation includes two separate layers of water resistive barrier laid over bare sheathing, corrosion resistant lath and fasteners, and nominal ½-inch-thick mortar scratch coat and setting bed. Outline the archway using an 8x10-inch keystone and a soldier course of flats on either side.
1. Garage Door Replacement
Resale: 98% ($3,400)
Now, for the top home improvement of 2018, as determined by Remodeling Magazine 2018 cost vs. value report--replacing your garage doors.
New garage doors are a great way to increase curb appeal while making a smart investment. With so many options, like fresh colors, wood-finish embossed steel, vinyl, windows, etc. a garage door can complete your home’s overall look. This home remodeling project will make your house feel more upscale, thus adding to your home’s value.
The average cost of garage door replacement for a double-wide garage door is about $3,500, but with a near 100% return on that investment, you'll see over $3,400 at resale!
Craig Webb of Remodeling Magazine said, “A new garage door, for instance, essentially pays for itself, earning you a whopping 98.3% of your money back, making this the best value of the whole bunch.”
When you compare those resale values, and the average cost per project - the choice is clear, garage door replacement is the way to go.
Whatever renovations your home may need, the best way to approach home remodeling is to think of it like investing. Putting money back into your home is always a good idea. However, like any investment, you’re going to want to pay attention to the return.
If you’re picking stocks and bonds, you want the investment vehicle that’s going to provide the highest return, at the lowest risk level. While home improvement projects aren’t typically thought of as volatile, there are projects that perform better than others.
Looking for a local garage door specialist? Contact Fagan Door today! In business since 1975, Fagan Door has the best reputation and expertise for garage door products and service in New England.