If you own a home, adding value through home improvement projects is always a key goal. However, it can often feel like a pipedream to get everything on your wish-list done, due to budget and time restraints. By being strategic about remodeling projects, you can drastically improve the value of your home without having to tick off every box on your list. When considering cost versus value1, there’s a few key areas and rooms to focus on that will give you the most ROI towards increasing your home’s value.
1. Replacing Doors: Front Entry and Garage
First impressions matter, and extending your curb appeal to the front door is key.
Changing out the front door can have a huge impact on your resale value with one of the biggest ROIs in our list. In 2016, entry door replacements cost around $1300 and had an average resale value of around $1200, recouping 90% of their cost. Considering that most remodeling projects don't actually recoup their costs when broken down individually, changing out the front door is smart investment. Because of their low cost, they are an easy thing to implement while still having high recoup costs. Garage doors also fit into this category, costing around $1700 to replace and adding around $1500 to the overall resale value.
2. Mind the Gap Above: Attic Insulation
When talking about getting the most for your remodel, improving the attic space should be moved to the top of your priority list.
Adding fiberglass insulation cost homeowners around $1250 in 2016 but contributed $1450 to the resale value of the home. That’s a 117% recoup of the cost. Plus, adding the insulation will help lower your overall heating and cooling costs with air no longer escaping through the attic. Often overlooked in favor of parts of the home that can be immediately accessed, it’s clear that the space above counts as much as the living areas.
3. When in Doubt, Stick to the Kitchen
Is your house in dire need of both an additional bathroom and a kitchen that isn’t stuck in another decade?
Always choose to do the kitchen first. Not only does it have a higher recoup percentage, the key deciding factor lies in buyer perception. Potential buyers will overestimate how much a kitchen remodel will cost if they walk into a house that doesn’t have an updated kitchen. This will cause them to put in a much lower bid. Better to put in the work yourself and let the buyer’s overestimation of costs work in your favor.
By the way, the average cost of a minor kitchen remodel in 2016? $20,0002. Smart homeowners can get that price lower. With a recoup cost percentage of 83%, taking the time to improve your kitchen is well worth it. Plus, who doesn’t love preparing Sunday brunch on a brand new quartz-topped island?
4. Best on a Budget: a New Deck
Don’t have a lot of wiggle room in your expenses right now?
You can still add value to your home. One of the simplest ways to do it is by adding in a new deck. A basic wood deck can run for as little as $1000. Buying high quality materials and doing the installation yourself is one of the best ways to save money while increasing the deck’s value to the home3. Adding in a few key features like a high-privacy fence and a low-maintenance stain can add up to a $4000 value to your home when it’s finished.
While It can be scary or intimidating trying to figure out where your money is best spent, sticking to remodeling projects in these 4 key areas will drastically improve your home’s value and recoup most of the cost of the project at the same time.