Your home is not just a place to reside, relax, and grow old in. It’s also one of your most significant financial investments. Which is why investing in renovation projects is a sound idea not only in terms of increased resale value, but also in terms of your emotions. According to a recent report on the subject, engaging in home renovations can actually make you happier and feeling more positive about yourself, while upping your property’s value.
But some renovations will add more value than others when it comes time to either sell or refinance your existing mortgage. Some of the more common home renovation projects like updating your kitchen, adding a new deck, and remodeling your old, outdated bathrooms, can be quite expensive. This is why you need to have at least some idea of what to expect prior to deciding which kind of remodeling project to sink your teeth and your hard-earned cash into.
Not too long ago, Remodeling Magazine examined more than 20 home modeling projects to find out which would offer the most resale value. These are the projects they say will give you the most bang for your buck.
Garage Door Replacement
Cost on average: $3,907
Resale value on average: $3,663
Recouped cost: 93.8%
Stunning modern garage doors earned a high spot on Remodeling Magazine’s list when it comes to getting the most cash back for your renovation investment. Estimating this project is based on the cost associated with removal and disposal of a 16 by 7-foot existing garage door and then replacing it with a contemporary, four-section overhead door that runs on a heavy-duty galvanized steel tracking system.
The above estimate assumes you will reutilize your existing automatic garage door opener. In the end, this “curb appeal enhancer” project can potentially recoup 93.8 percent of your remodeling investment when it comes time to sell your home.
Stone Veneer Exterior
Cost on average: $10,386
Resale value on average: $9,571
Recouped cost: 92.1%
Getting rid of that old, dull vinyl siding on your entryway and replacing it with a manufactured stone veneer is said to greatly enhance your home’s exterior. The estimate takes into account 36 linear feet of sills, 40 linear feet of stone corners, plus materials required for the job like corrosion-resistant lath, fasteners, and two water-resistant barrier layers.
This remodeling project can recoup up to 92 percent of its original cost.
Limited Kitchen Renovation
Cost on average: $26,214
Resale value on average: $18,927
Recouped cost: 72.2%
Perhaps one of the most popular home renovations, remodeling your kitchen into a modern and more functional cooking and eating space can add more than just increased value to your property. It will also increase your enjoyment of daily actions like preparing and cooking your favorite dishes, entertaining family and friends, and sharing the nightly meal with those closest to you.
Buyers taking an interest in your home will also take immediate notice of a kitchen remodel. The estimate takes into account a 200-square-foot kitchen space that contains 30 linear feet of countertops and cabinets, replacing old and outdated appliances with brand new, more energy efficient models, the refacing of cabinets, new countertops and sink, new flooring, and refinishing the walls.
You should redeem about 72 percent of the cost of a minor and/or limited kitchen renovation.
New Fiber-Cement Exterior Siding
Cost on average: $19,626
Resale value on average: $13,618
Recouped cost: 69.4%
Worn-out exterior siding can make your home look old and unappealing. In terms of the average home, replacing 1,250 square feet of outdated vinyl siding with a new fiber-cement siding will run you a little over $19,500. The exterior remodel also includes 4/4 and 5/4 thick trim.
You should recoup about 69 percent of your investment upon resale.
New Vinyl Windows
Cost on average: $19,385
Resale value on average: $13,297
Recouped cost: 68.6%
Window replacement is also one of the more popular home renovations that can add value to your property. Replacing your old windows with “green” energy saving low-E (low emissivity), simulated, divided-light, custom color finished windows, can give your home a real boost in appearance and function.
You need to make sure the new window trim exterior matches the existing interior trim, and that the interior trim is left untouched. This will keep your construction costs down. The average overall cost for ten new windows can run you about $19,000. But you can plan to redeem close to 70 percent of your investment upon resale.