Are you considering a remodeling project or a home renovation?
While many renovation and remodeling projects are performed for aesthetics and functionality, return on investment (ROI) and the project’s impact on your home value are important considerations. Home improvement ROI is especially vital if you’re planning to sell your home in the foreseeable future.
A ROI percentage indicates how much of the project’s cost is transferred to your home’s value. So let’s say you perform a complete overhaul on your home’s kitchen. If kitchen remodels have a ROI of 65% and the project cost a total of $10,000, then $6,500 of that $10,000 expenditure would be added to your home’s value. Therefore, the higher the ROI, the better for your home equity.
So dollar for dollar, which home improvements have the highest ROI? Consider the following figures, which are based on national averages.
• Front Door Replacement ROI is approximately 115%.
• Interior Painting ROI is approximately 150%.
• Home Siding Replacement ROI is approximately 87%.
• Attic Bedroom Addition ROI is approximately 84%.
• Minor Kitchen Remodeling ROI averages around 82%.
• Wood Deck Installation ROI is approximately 80%.
• Window Replacement ROI is around 74%, with vinyl windows carrying a slightly higher ROI and wood windows carrying a slightly lower ROI.
• Exterior Painting ROI is approximately 72%.
• Second Floor Addition ROI is approximately 70%.
• Family Room Addition ROI will average around 65%.
• Major Kitchen Remodeling ROI is around 63%.
• Roof Replacement ROI comes in at approximately 60% when dealing with asphalt shingles, although metal roofing with a lifetime guarantee has a much higher ROI if approximately 73%.
• Garage Addition ROI typically averages 60%
• Bathroom Addition ROI comes in at approximately 57%.
• Bedroom Addition ROI averages approximately 50%.
Of course, each home improvement project is unique, but generally speaking, these average ROI figures ring true regardless of the quality of the materials used.
In fact, the overall quality of the materials and crafsmanship has a surprisingly minimal impact on ROI. So while it’s generally best to use good quality materials and opt for good quality craftsmanship, opting for high end materials and craftsmanship generally won’t convert into increased ROI when it comes to your home equity.
Whether you’re ready to embark upon a new home improvement project, renovations, remodeling or an entirely new home build, “Scott Binsack”, the CEO and founder of Mansions & Estates International, is here to assist by serving as your consultant and liaison between the client and the contractors. It’s everything you need to enjoy a smooth building project.
Contact Mansions & Estates by phone at 800.956.3855.