When you’re preparing to list your home, it can be difficult knowing where to spend money on improvements that will attract more buyers. the Cost-benefit report 2021 provides valuable insights and shows the average costs of 22 common renovation projects and their value retention when sold. Using this data, we share the renovation projects that are most likely to add value to your home and offer the best return on investment (ROI).
Biggest return on investment
Based on the national average, the top six upgrades with the highest ROI are:
1. Replacement of the garage door: 93.8%
2. Manufactured stone veneer: 92.1%
3. Smaller kitchen remodeling (middle class): 72.2%
4. Replace siding (Fiber cement): 69.4%
5. Window replacement (vinyl): 68.6%
6. Change of page (vinyl): 68.3%
Lowest job costs
When comparing renovation projects with the highest return on investment and the lowest upfront investment, garage door replacements are the most promising at $ 3,907. Vinyl siding replacement is the fifth cheapest renovation project ($ 16,576), making it one of the top options for ROI and a more economical renovation option.
Replacing a front door with a steel door ($ 2,082) was the most cost-effective renovation project, and with a 65% ROI, it wasn’t a bad investment.
Manufactured stone veneer also made it into the top 5 for ROI and low-cost jobs (10,386). With an ROI of 92.1%, the investment is definitely worth it.
The report indicates that exterior renovations (doors, windows and siding) outperform larger renovation projects. These renovation decisions could be influenced by the pandemic as families are less likely to have Sagittarius in their homes and warmer weather keeps people outdoors.
However, another reason for the popularity of exterior renovations could simply be the age of homes across the country, which are 37 years old on average, and may require significant exterior repairs.
Regardless of the trends behind these renovations, outdoor projects add to the appeal of the curb, which is a major factor in selling a home.
The 34th yearbook Cost-value report was compiled with data from 150 US markets. Homeowners and prospective sellers can use the interactive report to determine which projects are delivering the best ROI based on region, city, and zip code.