Which Home Remodel Projects Generate The Best ROI?
Who wouldn’t love to own a perfect home? It’s an-impossible-to-achieve dream that is shared by every homeowner. You can get close to it by updating your home with home remodel projects. Those little adjustments and DIY projects aren’t cheap though. Some remodeling work can come with a hefty price tag. And those updates never end! So, which remodeling projects should you devote your time to? You should really focus on the projects that deliver the biggest bang for your buck later, or the best return on investment (ROI).
As you start to compare different home remodeling projects, you should carefully consider how they will pay off for you later down the line. You’ll inevitably sell your home at some point, so the remodeling work you do now should ideally pay off big time for you later. Use our handy advice to hone in on which home remodel projects to focus on now.
1. Replacing Your Front Door
It may sound like a simple and albeit easy remodeling project, but it can have a large impact on your home’s value. Take your time to decide between the various styles of main entrance doors though. Certain materials can fetch a higher ROI than others, but you don’t want the style to disrupt the flow of your home. The aesthetic design of your door should match up well with the style of your house. A displeasing match could actually decrease your home's value, resulting in a lower ROI.
This can be one of the best home remodel projects to improve your home’s value though! Depending on the material you choose, your front door replacement could cost no more than $3,000. It might cost a pretty penny now, but it rewards your efforts later. Did you know that steel doors can bring in an ROI of 101.8%? It’s true! And fiberglass doors can bring in an ROI of 72% too. Just make sure your new door meshes well with your home’s flow.
2. Upgrade Your Fireplace
Nothing ties together a home quite like a cozy little fireplace. It’s a must-have for many homebuyers! It might not be a top priority for you, but a new fireplace could be one of the best home remodel projects. It can provide you with significant leverage for any future selling processes. By installing a new fireplace, you can bring in a 54% ROI for your home. By some estimates, even 91% of the installation costs of a new fireplace are recouped when you sell your home. Take the initiative and make a new fireplace a top priority for your home.
3. Remodel The Kitchen
Many homebuyers argue that there is no room that is more important than the kitchen. If your kitchen is too small, too modern, or too out-dated, you could scare off potential homebuyers. If you want to maximize the ROI for your home, then an upgraded kitchen needs to top your list of home remodel projects. An elegant kitchen will make the offers roll in like clockwork.
Plus, it will benefit your ROI for your home. Did you know that the national average ROI for a major kitchen remodel is almost 54%? That’s an incredible value for your home!
We are, of course, aware that it isn’t cheap to completely remodel a kitchen. From the redesigned layout to the brand new cabinets, the costs can quickly pile on for your kitchen. If you want to attract buyers, you don’t have to remodel the entire kitchen! Start out small and utilize your budget effectively with some minor adjustments and upgrades. You could:
- Upgrade your countertops
- Repaint your kitchen walls
- Update the cabinetry
- Replace the flooring
4. Convert The Attic Into A Spare Bedroom
Stop using your attic solely for storage! Turning your attic into a new bedroom is one of the best home remodel projects that you can take on. When you take the initiative and convert your attic into a bedroom, you could tack on over $40K to your home’s total value! That’s an outstanding ROI that cannot be ignored. Keep in mind that some of these changes will be drastic and could require you to get more accurate in-person estimates. Your attic conversion could involve a variety of tasks like:
- Improving the strength of the floor
- Insulating the room
- Applying finishes
- Installing a dormer
- Creating easy stair access
- Adding in a functional bathroom
5. Replacing Your Siding
Never underestimate the power of curb appeal. The exterior of a home is just as important as the interior. Homebuyers don’t want to live in a home that looks dilapidated from the outside; they want a home that has a fresh and beautiful exterior appeal. Replacing your exterior siding could be one of the best home remodel projects to increase the value of your home.
While the average ROI for siding replacements can vary from region to region in the U.S., there are some notable national averages to consider. For instance:
Vinyl siding can result in an 80.7% ROI
Fiber cement siding could generate an 84.3% ROI
And foam backed vinyl siding could reach a 77.6% ROI
Take your time with this decision as well! You don’t want to get stuck with siding that you personally don’t enjoy.