Home Remodeling: Which Projects Have the Best ROI?

Homeowners who may want to sell their home in the coming years will probably continue to face a tough market. One option for improving a home’s appeal—and increasing the resale value—is remodeling. Meanwhile, these projects also enhance a home’s livability. Each year, Remodeling magazine publishes statistics on the return on investment (ROI) that homeowners can expect from different remodeling projects, based on where they live. The ten projects below give the most bang for your remodeling buck!

1. Entry door replacement: Invest in an attractive steel door for the front of your home, and enjoy an average 128.9% return. Why so high? The entryway is usually the focal point of the house, so this project improves curb appeal and can also offer extra security.
2. Converting the attic to a bedroom: Add a functional bedroom with closet space and a full bathroom, for an 83.1% ROI. For this statistic, Remodeling looked at bedrooms that were at least 15 x 15 and used eave space for extra storage.
3. Adding a wooden deck: Enjoy the outdoors year round—and recoup about 80% of your money with a wooden deck. Composite decks also less return, around 71%. Lesson: stick with high quality materials for this outdoor project.
4. Replace vinyl siding: Like replacing the door, putting in new siding can significantly improve a home’s appearance. Return on siding replacement averages 79.9%. Stick with neutral colors for the best return and overall appeal.
5. Minor kitchen remodeling: Give an already-functional kitchen a facelift with new laminate countertops, energy-efficient stove and range, and fresh paint, and enjoy about 78.3% return. A minor kitchen remodel maintains the same structure, but improves appearance.
6. Install new wooden windows: New windows not only give your home a “fresh face,” but they can also improve energy efficiency. Home buyers reward that investment, and this project garners a 77.3% ROI.
7. Install new vinyl windows: Vinyl windows closely follow wooden ones for adding value, with a 76.6% return. The trim color on the windows should complement the siding, and neutral shades are generally the best bet.
8. Remodel the basement: Although this option isn’t common in Florida, it is a popular renovation elsewhere in the South Atlantic region—likely because it pays off about 75% of the homeowner’s investment. To qualify, the basement must be finished and air conditioned/heated.
9. Major kitchen remodel: With a 72.1% return, a major kitchen remodel can be worth the investment, particularly if you plan in staying in the home and enjoying the added functionality for a while before you sell. A major remodel entails ripping out existing cabinets, changing the layout of the kitchen, and new appliances.
10. Redo the bathroom: Use quality materials like tile and porcelain for a higher-end, finished look in the bathroom. Couple that with the finishing touches, like new faucets and towel racks, and enjoy a 71% return on your investment.

The key to maximizing your home improvement dollars is to do the job right the first time. Start with durable materials that will add to the home’s appearance, and don’t forget the details like paint, molding, and baseboards!