Summer is almost here and that means homeowners everywhere are gearing up to check off the items that top their home renovation lists. Savvy homeowners will be looking for the projects that give them the highest possible return on their investment. That’s where Remodeling.com’s 2017 Cost VS Value Report comes in handy. The report looks at 29 different home improvement projects across 99 markets in the United States. Overall, these home improvements net a 64.3% ROI on average, with some improvements performing far better than others.
As a builder, you can use this report’s findings to learn which projects will net the greatest home improvement ROI — and therefore, which projects you’ll likely see the most this coming renovation season! Let’s take a quick look at some of the top projects for this year.
Top Project: Fiberglass Attic Insulation
Potential ROI: 107.7%
Fiberglass attic insulation was the top scoring home improvement — and, in fact, the only home improvement that saw returns greater than the money invested. Homeowners on average spent $1,343 to complete this project and recouped $1,446 on the resale value. With homeowners becoming ever more energy conscious, this is a project that is likely to be popular for many years to come.
Top Project: Steel Entry Door Replacement
Potential ROI: 90.7%
This project returns slightly less than the initial investment but it is a valuable improvement nonetheless. The project costs about $1,413 on average and returns $1,282. Keep in mind that these figures are for steel doors only, which are more attractive to homeowners because of their durability, longevity and energy efficiency. Therma-Tru steel entry doors add curb appeal while securing your home.
Top Project: Manufactured Stone Veneer
Potential ROI: 89.4%
There’s no doubt about it: Stone exterior accents are hugely popular right now. This doesn’t mean that homeowners are looking to replace all siding with the look of stone, but decorative panels around the base of the home, along an exterior accent wall or along the porch are all in high demand. Additionally, manufactured stone veneer tends to be lighter weight, easier to install and less expensive than real stone. Homeowners are spending $7,851 on average for this project and recouping $7,019.
Top Project: Upscale Garage Door Replacement
Potential ROI: 85%
The key takeaway here is the upscale part. Basic garage door replacements on average net only 76.9% ROI while upscale garage door replacements have a much larger ROI. The reasoning behind this is that upscale garage doors are as much an aesthetic improvement as a practical one, adding a much-needed bit of style to an area of a home’s exterior that is often quite bland.
Top Project: Kitchen Remodel
Potential ROI: 80.2%
Everyone wants the ideal kitchen and that’s why this project ranks high on the list of improvements that see large returns. The interesting thing about kitchen remodels, however, is that the more you invest, the less you are likely to see back. According to the report, minor kitchen remodels averaged about $20,830 to complete. The average ROI on that sum came out to $16,699. On the other end of the spectrum, major kitchen remodels (not just new cabinets, counters and flooring, but large reconfigurations) averaged at $122,991 to complete. Here, the home improvement ROI was substantially less — about $76,149 in returns, or 61.9% of the investment reflected in the home’s resale value.
As renovation season ramps up, homeowners will be on the lookout for smart ways to invest in their homes. The home renovation projects listed here will be among the top requests made to builders and renovators.
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