Posted on by Team RE

Renovations that Offer the Best/Worst Return on Investment

home renovation

Experts say a kitchen sells a house, but the number one renovation that will bring the best bucks in 2016 has nothing to do with a kitchen. According to Remodeling magazine’s “2016 Cost vs. Value Report,” these are the items that will give you the best return on your investment (ROI):

Best ROI

  • Adding fiberglass attic insulation (116.9% ROI)
  • Adding stone veneer to the exterior (92.9% ROI)
  • Replacing the garage door with a midscale door (91.5% ROI)
  • Replacing the old front door with a steel entry door (91.1% ROI)
  • Upgrading the garage door to one that’s high end (90.1% ROI)

Worst ROI

Now for the bad news.

  • Adding a bathroom (56.2% ROI)
  • Upscale bathroom renovation to bathroom addition (0.5% ROI)
  • Upscale primary suite addition (57.2%)
  • Remodeling your current bathroom (57.5%)
  • Adding a deck of composite materials (57.7%)

The Truth About Home Renovation Projects

Contrary to many homeowners’ expectations, extensive home renovation projects don’t necessarily increase the net value of a home. In fact, Select Homes Lead Listing Agent Brian Brundage says, “It’s a huge misconception among homeowners that costly renovations will pay off at closing time. As the data shows, in the vast majority of cases, these projects don’t yield a return.”

So if you’re a homeowner trying to improve the value of your home before selling it, what are you to do? Brundage says there’s still hope. “It sounds simple, but the three most influential things you can update are the carpet, the paint, and the light fixtures. These are affordable improvements that can have a surprising impact at closing,” Brundage says.

 

 

Life In Style, the weekly publication from Team Real Estate, is dedicated to helping homeowners make smarter decisions about their homes and lifestyle. It features original news, commentary, tips, and analysis from leading industry experts.