Not all home remodels are created equally, especially when it comes time to look at the return on investment (ROI). The good news is that there are some numbers and statistics out there to help determine which areas produce the best financial outcomes. Use this article to help get started and perhaps come to a decision about where to put those home remodeling dollars.
One surefire leader in the ROI department is the area of home maintenance. That means something that may be a necessity, but can still offer an improvement in terms of aesthetics, for instance. This includes something such as a new roof, or new home siding. One study by Remodeling Magazine found that siding replacement had a 92.8% ROI, putting it close to 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, also by Remodeling Magazine, garage door and front door upgrades were among the biggest winners, returning between 90.1% and 91.5% of cost.
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 a bathroom addition, recouping just 56.2% of investment. That’s likely a surprise to many, who would otherwise think that the extra bathroom and being able to add that to a home’s specs would make a huge, positive impact.
The scale of a remodel in terms of its cost, and its cost relative to the rest of the home, also makes a difference. Pouring $50,000 into a fancy, upscale kitchen, in a home that’s in the $200,000 range beforehand, probably won’t deliver the type of ROI to make it worthwhile.
Applying that same principle and looking across multiple remodeling categories, it’s often the good, middle of the range upgrade that provides the highest return. Not everyone wants to splurge on the most luxurious choice; while at the other end of the spectrum, bargain quality might not have any appeal. So keeping costs in check and choosing quality, but not splurge-worthy, accessories or components is often ideal, particularly for something such as a bathroom or kitchen remodel.
Of course, every homeowner is going to have to determine whether or not 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, and ROI can be thrown out the window. Whether or not there’s a plan to sell the home in the near future also makes a difference here, but it’s always a personal decision.
Be sure to speak with a home remodeling contractor in Wichita to learn more about what’s realistic or not, and what they believe is possible.