There are two reasons why homeowners renovate their houses: to add resale value, or for personal preference. Even if you fall into the second category, it is important to keep resale value in mind, as you never know what the future holds.
With that said, these are the five best and worst home improvement projects based on return on investment, according to Remodeling Magazine’s 2017 Cost vs. Value Report.
Top 5 Best Home Improvement Projects
- Fiberglass attic insulation: 108% return on investment
This is the only item on the list which actually adds more value to your home than it costs to install. The energy savings are also a nice perk.
- New steel entry door: 91% return on investment
Your home starts at the front door, which may be why this project is near the top of the list every year.
- Manufactured stone veneer: 89% return on investment
Replacing the bottom-third of your vinyl siding with stone veneer instantly boosts curb appeal and resale value.
- Minor kitchen remodel: 80% return on investment
A “minor” kitchen remodel includes replacing your stove, refrigerator, countertops, sink, faucet, cabinet fronts and hardware.
- Garage door replacement: 77% return on investment
A new garage door can improve curb appeal and security, which is why it boasts such a high return on investment.
Top 5 Worst Home Improvement Projects
- Bathroom addition: 53.9% return on investment
Think adding a bathroom will increase the resale value of your home? Think again. This ranks as the worst home improvement project, with a paltry ROI of 53.9%.
- Backup power generator: 54% return on investment
Standby generators can automatically detect power outages and run for days at a time. However, potential home buyers just don’t seem to value them very highly.
- Backyard patio: 55% return on investment
The upscale patio used in this report included a gas-powered fire pit and a stone veneer kitchen unit complete with grill, sink, and mini-fridge.
- Bathroom remodel: 65% return on investment
In 2005, this home improvement project recorded an impressive ROI of 102%, but has since fallen to the bottom of the ranks.
- Master suite addition: 65% return on investment
The average cost for this job was nearly $120,000, but it only increased resale values by $77,000.
Whether you need help saving up for your first house, or making room in the budget for your next home improvement project, the financial advisors at American Investment Planners, LLC are here to offer their professional consultation. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.
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