Buying, and even owning a home has been a roller coaster of emotions over the last couple years. Housing prices have skyrocketed, building costs are at all time highs, and it leaves many homeowners wondering if they should sell – I mean, will the home values stay this high over the next few years? Most signs point to yes – with continued, albeit slower growth, but many people did decide to sell. My issue with that was, if my house sells for a premium, I would have to buy another for a premium. Not what I wanted to do – so I sat tight. I’m sure the majority of homeowners did the same – it’s just too crazy out there for me!
Seriously though, I’m more than happy with my house even if it does need tons of work. Because of this, I became interested in home projects with the best ROI. It keeps me busy and is a great inspiration for everything you read here on My Homie.
So, you’re like me, you’re not going anywhere any time soon but you’re interested in upgrading your home to not only make it super comfortable and fun to live in, but also maintain and gain value over time so when you are ready to sell it for that bungalow on the beach, you get the best price possible. While we can’t predict exactly what the market will bring over the next few years, we can know what home improvement projects will give you your best return on investment (ROI). Let’s be real, home upgrades are expensive – I don’t want to spend the money if it’s not going to bring value to my investment. Believe it or not, not all upgrades are equal when it comes to that.
I found a really good report that Remodeling Magazine has published over the last few years. You can go check out their full list at the link above, but I want to talk about a few of them below. What’s even better is they have the ranking broken down by U.S. region as well because as we all know, housing markets vary by region. Again, I want to dig a little deeper into a few of the top national average ranked remodeling projects with the highest ROI according to Remodeling Magazine.
Garage Door Replacement – ROI 93.3%
This one threw me off guard – Remodeling Magazine has this one listed as number one. I’m assuming it has to do with curb appeal, and the fact that the majority of garage doors are super boring. Another benefit of replacing your garage door is energy efficiency. If your door is anything like mine, about 30 years old, it has no insulation. Newer doors are insulated and will help to keep your garage temperature regulated throughout the year. It sure would be nice to not have a 100F garage on the other side of my kitchen! While I write this I’m devising a plan to get a new garage door – the insulation part has me sold. Plus, a 93.3% ROI is pretty good.
Minor Kitchen Remodel – 71.2%
This is a much bigger undertaking than replacing a garage door, but it still has a good ROI – as it should! Kitchens are a focal point of a house. Here they say “minor kitchen remodel” as opposed to a complete remodel – which apparently has a lower ROI, in the 50% range. They are talking about new countertops, cabinet front, maybe cabinet paint, flooring and/or appliance upgrades. These are all things I am currently working on and recommend to anyone that just moved into a house that is more than 10 or so years old. Sure, it would be nice to have brand new cabinets with soft stop drawers and kick cabinets below – but that’s not in my budget. In the meantime, some granite countertops and a fresh coat of paint will not only bring your kitchen into the 21st century, but add value to your home as well.
Siding Replacement (Fiber-Cement) – 68.3%
I’m really happy to see siding toward the top of this list. Siding can be an afterthought for many – you don’t see it when you’re in the house and it only needs replaced ever 20? 30? Years – I don’t really know. I do know siding takes a beating in the southeast U.S. and I’m sure anywhere else where the summers are hot and the sun is trying to kill you. My house has beige vinyl siding so it’s difficult to tell it’s faded over the years. This has enabled me to get away with putting its replacement off a little bit, and I’m thankful for that because siding is expensive! Siding is important though because it prevents water from intruding and rotting out the framing of your house (no big deal, right?).
But, its good to know that fiber-cement siding has a high ROI – and this is because of its quality. Fiber-cement siding lasts longer and looks much better (in my opinion) than vinyl. It has a quality finish to it, sharp lines and is paintable. Vinyl on the other hand can get wavy, doesn’t look as crisp and your stuck with the color.
Window Replacement (Vinyl) – 67.5%
Windows are another large investment that bring a decent ROI. I know from experience that windows can cost tens of thousands of dollars so it’s nice to know you can get more than half of that back in the value of your home. Windows are also super important to keep your home efficient, in turn saving you money in heating and cooling expenses. On the list here is vinyl windows – I’m not sure if vinyl is the best type of window out there, but apparently it brings a good return. This may be due to the middle of the road costs associated with them – there are better products. But the takeaway here is if you have to replace windows, it’ll increase your home value.
Deck Addition (Wood) – 64.8%
This is another one that I’m glad to see on the list – especially with the increased cost of lumber these days. At 64.8% ROI, it’s good to know that you’ll get more than half of this investment back out of the house. Plus, a new deck, remodeled deck, or an addition to an existing one makes for great use of outdoor space. My wife and I love to entertain so our deck at the forefront of our planning! If you’re on the fence about building a deck, this should help you make a decision.
Roofing Replacement (Asphalt Shingles) – 59.6%
Your homes roof is another one of those super important, yet overlooked aspects of home remodeling that will bring value! I feel like people dread having to replace it because its expensive and you can’t see it when you’re inside! You don’t really interact with your roof you know? I know I’d rather spend that money on a hot tub! But either way, a good roof is a must have in order to protect your investment. Not to mention, your roof needs to be up to par in order to get home owners insurance. Speaking of insurance, take a look at our policy, you may be able to get them to replace your roof if there is a certain amount of damage (wind, hail, fallen tree, etc.). It can’t hurt to take a look! It doesn’t matter who pays for it, you’ll still get a 59.6% ROI!
Again, big thanks to Remodeling Magazine for the ROI analysis! Take a look and see if any of your projects are on this list. Let us know if you plan on doing, or have already done one of these, especially if you sold a home! We’d love to hear from you.