Home Renovation Projects That Offer the Highest ROI

If you’re thinking about sticking a “for sale” sign in front of your house, you may also have some projects in mind to make it that much more attractive to the market. But dropping big bucks on home renovation projects can feel like a huge risk if you don’t know how much of your investment you’ll recover at the time of sale. Here are some of the most common home renovations to consider, along with the typical return on your investment.

Ditchin’ the Old Kitchen

The kitchen is often the room that can make or break the sale of your home. Remodels are a huge expense with an average return investment of 62 percent. It can be risky, but if you’re looking to make a big statement with just one room, an attractive kitchen can make your home irresistible to a potential buyer.

Remodeling your kitchen means choosing materials and colorsthat appeal to the masses. Spend on high quality stainless steel appliances and functional storage features such as pantry drawers or waste-recycling cabinetry. Just be careful not to over personalize the space. You might fall in love with groovy pendant lights going for $100 a pop, but will the buyers care? Maybe not.

Bringing the Bathroom Up-to Date

Aside from tacky tiling, outdated bathrooms often have a poor layout and lack many of the desired functional elements buyers are after. You can increase efficiency in this small room with plenty of storage and upgraded features.

Now the big question is walk-in shower or bathtub? For starters tubs are more practical and therefore appear much more attractive to growing families with kids. If you only have one bathroom, choose the tub all the way; however, if you have the space to make everyone’s bathroom dreams come true, tiled walk-in showers are a nice feature to include in a master with the practical tub being a great choice for the second bathroom.

It is likely you regain at least half of your investment, but that doesn’t mean the cost of renovation was flushed down the brand-new toilet. Functional bathrooms are essential for a livable home and have the potential to be a huge selling point.

Replacing the Roof

Buyers are likely to be much less impressed with a newly remodeled bathroom and other efforts toward home improvements if the rickety roof is 30 years old. Most sellers don’t want to deal with the hassle of such a large project, but you don’t want the poor condition of the roof to discourage buyers who would otherwise make an offer.

This project is worth all of the effort and initial cost. The typical value recovered from a roof replacement is as high as 109 percent. The expected profit practically makes the decision for you -- a new roof is worth it.

Windows are Worth It

You might only break even, but you definitely get bang for your buck with this investment. Replacing windows gives your home an interior and exterior update. They also increase the potential for more sunlight and energy efficiency. Considering the hefty price of other renovation projects, vinyl windows are a huge selling point that buyers won’t overlook.

Garage Door 

Replacing a garage door is definitely not the sexiest renovation project. It might even seem like more hassle than it’s worth, as you typically won’t find this amenity at the top of a buyer’s wish list. But swapping the scuffed, worn surface with a new door will do more than boost the exterior look of your house so you are likely to see a high return on this small project.

 

Work on the areas that need the most attention and will likely yield the largest return. Buyers want to feel sure the home they are buying has been well-maintained. The more effort you put into these projects, the more obvious your efforts will be to your home’s new owner.