Top Remodeling ROI Projects

Updating your home is a great way to add instant equity, that is, if you choose the right improvements. Many homeowners make the mistake of believing that the larger an upgrade, the better. That’s simply not always the case, for instance, kitchen remodels will bring an impressive return on investment of more than 85 percent. However, that return is only applicable to minor kitchen remodeling, according to figures compiled by professionals, a major kitchen overhaul won’t fetch nearly as good a return.

However, there are six home improvements which do bring a high ROI and you might not believe what makes the list. The most important part of remodeling is knowing not only your budget, but which home improvement projects should be at the top of your list and which should be crossed right off.

Home Upgrades that Don’t Pay Off

One of the worst performers is counterintuitive: the home office remodel. In an age where work is more on-the-go than ever before and telecommuting is on a sharp rise, one would think that a fully-equipped home office would bring a good return on investment, but the opposite is true. In 2005, a home office makeover fetched a return of nearly 73 percent. Today, it’s return power is twenty points less, at just 53 percent.

“Homeowners who updated their most frequented rooms and those who added on more living space enjoyed the biggest bang for their buck on home improvements, according to Remodeling Online’s latest Cost Vs. Value Report.” —

Other home improvements might serve as creature comforts or functionality but do not bring a good return. What’s more, these conversions and additions actually hinder a home’s sale when it’s put on the market. Those include converting a bedroom into another type of room, converting a garage into a living space, installing a hot tub, and painting with bold, even loud colors.

Top Remodeling ROI Projects

Of the best remodeling ROI projects, four of the five highest earners have to do with curb appeal and security, along with two also being energy efficient. Here are the improvements that improve a home’s value:

  • Steel entry door. This one tops the list and probably comes as a shock. However, when you stop to consider why, it’s little wonder why this improvement fetches an impressive return of 96.6 percent. It improves curb appeal, increases security, and is generally more efficient at repelling outside elements.
  • Wooden deck addition. This addition increases a home’s value because it increases its entertaining and outdoor living space. A new wood deck returns an impressive 87.4 percent on investment and in some cities, nears or surpasses 100 percent.
  • Window replacement. If your home has old single pane windows, this is a great upgrade to make and cash-in on saving on energy costs month after month. What’s more, new wood windows bring a return of 85.3 percent while new vinyl windows return 83.7 percent.
  • New garage door. Here again, it’s curb appeal and security which make a new garage door, either mid-range or upscale, brings a return of 84 percent. One that’s durable, automatic, and enhances the exterior of the home will perform best.

Yet two more home improvements which nets a high return on investment is a bathroom remodel, averaging a whopping 84.9 percent; and, a backup generator, which returns 67.5 percent, an addition that’s particularly useful in the subtropical climate that is Orlando.