Every January, eager homeowners try to determine what home remodeling projects they should consider for the upcoming year. While remodeling the bathroom or adding that new kitchen island you always wanted may be the most desirable, they may not bring the highest return on your investment.
Home improvement projects never bring a return on investment more than 100 percent. In fact, the average return on investment (ROI) in the past few years is down to just under 60 percent. This means that most homeowners are only recouping 60 percent of the money they put into a remodeling project after the home is sold. Nonetheless, this does not mean you should be afraid of remodeling. Besides the ROI, you will of course reap the benefits while living in the home. On the other hand, if you’re looking for projects that have proven to bring a strong ROI, you may want to start your year with these five home remodeling projects.
1. Replace the Front Door
Surprisingly enough, new front doors bring the highest ROI among any home remodeling project and when you break it down, it makes perfect sense. Safety is one of the most important factors when someone is planning to buy a new home. A new front door is not only going to give the house a better curb appeal, but it will also make any potential buyer feel safe. This combination ultimately allows a new door to bring a 73 percent return on investment. According to ImproveNet, it costs between $400 and $850 to replace a front door.
2. Build a New Wood Deck
In a day where everything is online and out in the open, many of us enjoy the silence and privacy that wood decks bring to our backyards. Fortunately, not only are they DIY-friendly, but they also bring back a strong ROI. The average cost of building a deck is $6,148, but a new deck will roughly bring a 70 percent ROI. Once you decide, make sure you come up with a design, choose the right type of wood for your area, know all future costs (sealing) and determine the required maintenance time throughout its lifespan.
3. Replace the Windows
More and more homeowners are going green and a terrific way to make your home more energy efficient is by replacing your old windows. Not only will your home be warmer in the winter and cooler in the summer, but you will also save on HVAC costs down the road. Window installation can get expensive, jumping all the way up to $5,000, but just know, on top of the HVAC savings, know they tend to bring a ROI of 70 percent.
To lower costs, many homeowners prefer single pane windows as opposed to double hung or storm windows. However, while the upfront cost may be substantially less, more expensive windows are usually much stronger and can hold their ground even in the worst of storms.
4. Replace the Garage Door
Just like the front door, homeowners associate safety with their garage doors. Since the garage door is typically the most common entry point, it’s just as—if not more—important to your home’s safety than your front door. Both high-end and mid-level garage doors have been found to bring an estimated 71 percent ROI, but the high-end garage door is going to cost about twice as much to purchase and install. According to ImproveNet’s numbers, the average price to install a garage door is $964.
5. Update the Kitchen
Finally, while the kitchen may not bring the strongest ROI, it does attract new buyers. The kitchen is where life happens and has been known to make or break a sale.
Rather than spend upwards of $20,000 on a kitchen remodel, invest wisely in a few DIY projects you can do over the weekend, such as:
- Replace the knobs on the cabinets
- Paint the cabinets
- Add a backsplash
- Change the wall paint
- Install lights under the cabinets
People like new, and these projects give any kitchen the new look and feel they desire.
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