Not every home remodel is created equal, especially when it comes to the return on investment (ROI). The good news is, research has been done to help determine which areas produce the best financial benefits. This article will help you get started and perhaps come to a decision about where to put those home remodeling dollars.
Best ROI:
One leader in the ROI department is home maintenance projects. This includes anything that is considered a necessity, but also offers an improvement to aesthetic. For instance, a new roof, siding, or exteriors doors. One study by Remodeling Magazine found that garage door replacement had a 94% ROI, putting it at the top of the pack.
Quick exterior fixes also make for better curb appeal. It’s the first impression that counts, after all. That’s why according to another study by Remodeling Magazine, manufactured stone veneer was among the biggest winners, returning between 90% and 92% of cost.
Worst ROI:
Meanwhile, sometimes it’s the projects that seem like they ought to have the biggest ROI that end up disappointing. The same study showed that the lowest return on investment came from an upscale master suite addition, recouping just 48% of investment. That’s likely a surprise to many who would otherwise think that the extra space would make a huge, positive impact.
Things to Consider:
The scale of a remodel also makes a difference. A $75,000 kitchen remodel in a home that’s oringinally in the $200,000 range, probably won’t deliver the type of ROI to make it worthwhile.
Applying that same principle, it’s often middle of the spectrum projects that provides the highest return. Not everyone wants to splurge on the most luxurious selections; while at the same time, bargain quality might not have any appeal. So keeping costs in check and choosing quality, but not excessive options is often ideal. Especially for something such as a bathroom or kitchen remodel which have such a wide range of cost.
Of course, every homeowner is going to have to determine whether the return on investment even matters with a remodeling project, and if it does, to what degree. Sometimes the top priority may simply be personal enjoyment or functionality. In which case, ROI can be thrown out the window. Whether there’s a plan to sell the home in the near future also makes a difference here.
Be sure to speak with a home remodeling contractor in Wichita to help you determine your best course of action.
Editor’s Note: This article was originally published in January, 2017 and was updated in September, 2021 for accuracy.