Top ROI Home Improvements

The top ROI home improvements will probably surprise you because they aren’t particularly exciting. What they are, mostly, is practical. But as the latest report by the National Association of Realtors, or NAR, and the National Association of the Remodeling Industry, or NARI, shows which home improvements bring the biggest return. When you’re selling a home or buying a house, you should know which home improvements are worthwhile. For instance, an outdated electrical system is a necessary repair but it doesn’t mean you’ll get much out of it.

Top ROI Home Improvements

What’s most revealing is in the top six spots, a more energy-efficient home translates into a strong return-on-investment. You might think that a complete kitchen remodel is at the top of the list of ROI projects. But, once thought to return 75 to 80 percent, it’s now valued at just 67 percent. That puts it out of the top six ROI home improvements. What’s more, bathroom remodels and additions, as well as master bedroom remodels and additions, don’t bring a good ROI.

Trying to make your home “Flip or Flop”-worthy? Home renovations that return the most at resale aren’t particularly sexy, but they can be. The inaugural Remodeling Impact Report examines 20 home renovation projects, analyzing what they potentially return at resale. The report comes courtesy of the National Association of Realtors, or NAR, and the National Association of the Remodeling Industry, or NARI. Some of the results are surprising. —

By the way, adding another story to a home doesn’t even come close to making the best return-on-investment. In fact, more often than not, a second story addition typically prices a house out of its neighborhood. This means the improvement does add to the value of a house, but so much that it no longer fits the neighborhood. That translates into problematic resale, so it’s important to be mindful of this fact. In fact, some budget-friendly home improvements do much to make a house more appealing. But there are five great home improvements with substantial ROI:

  • New vinyl siding. Okay, so it’s not an exciting project but it is very practical and the return-on-investment clearly makes it worthwhile. On average, new vinyl siding costs approximately $12,000. However, new vinyl siding returns an impressive 83 percent of its cost at resale. It does provide a home with improved aesthetics and more protection from the elements.
  • New garage door. For a bigger return-on-investment, install a new garage door. A new garage door costs on average, $2,300 but it returns 87 percent. That’s substantial, considering it’s not something like installing an outdoor kitchen. But, just like new vinyl siding, it does improve a home’s aesthetics and that’s what makes it a good investment.
  • New hardwood floors. The average cost to install new hardwood floors is $5,500 but the return-on-investment is very impressive. You’ll receive 91 percent on what you paid. This is because hardwood is a huge selling feature, as it is very appealing to buyers.
  • New insulation. Just when you thought boring home improvements were no longer in the top five for return-on-investment, you see new insulation on the list. The average cost of installing new insulation is $2,100 and it’s worthwhile because it returns 95 percent at resale.
  • New roof. According to the National Association of Realtor and National Association of the Remodeling Industry study, a new roof costs on average, $7,600. However, it’s the number one ROI home improvement, fetching an unbelievable 105 percent.

If you’re going to buy or sell your home in the near future, please don’t hesitate to phone me at 407-616-7286, I’ll be happy to speak with you.