5 remodeling projects with the highest return on investment
Home improvements not only make your house livable, but certain projects can garner a high return on investment. (Photo courtesy of Yvonne Aguirre)
Millions of Americans are expected to remodel their homes this year as they wait out the return of a robust home selling market.
Angie’s List surveyed top remodelers and real estate professionals to determine which remodeling projects result in the best return on investment when it comes time to sell your home.
“Well-planned and executed home improvements make your house more livable while you live there, and they boost your home’s resale value,” says Angie Hicks, founder of Angie’s List, the nation's premier provider of consumer reviews on local service companies.
“If you’re investing in your home specifically to help sell it, focus your dollars on the things that will really wow a potential buyer.”
Home remodeling projects with the highest return on investment
- The kitchen – Whether it’s a major overhaul or a simple makeover, putting a fresh face on your kitchen is your best investment. Maximize your return by limiting your project cost to no more than 20 percent of the value of your home. Expect an 85 percent return on your investment.
- The bathroom – An outdated bathroom can spoil a sale. Current trends have homeowners installing large showers instead of garden tubs. A major update could cost less than $20,000, but it should yield an 80 percent return.
- Decks – A new deck can cost a few thousand to tens of thousands of dollars, depending on size and materials used. Before you build, look at other homes in your area and build accordingly. If the deck is in good shape, your return could be more than 80 percent.
- Siding – If your home’s facade is siding and it’s not in good shape, replacing or repairing the siding can bring instant freshness. You’ll likely spend at least $10,000, but you should get at least 80 percent back.
- Window replacement – The energy efficiency of new windows is a clear benefit to switching out older windows, but in some cases, it’s a safety feature, too. Costs depend on the number of windows you’re replacing, of course, and the type. Expect a return on your investment of at least 70 percent.
“Don’t settle for a company without a great local reputation or references you can verify,” Hicks says. “Wait for the right contractor.”
Visit Angie’s List for consumer reviews on highly rated contractors, builders and other service professionals.