5 Best and Worst Home Improvements for ROI

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December 1, 2015 at 7:38 pm  •  Posted in Home Maintenance, Selling a Home, Uncategorized by  •  0 Comments

There are a ton of home improvement shows and I for one am a huge fan, but there are a few points to keep in mind if you’re contemplating reenacting your favorite episode. Some updates can definitely increase the value of your home but beware of those that may leave you more than just feeling shortchanged. Here are some of the best home improvement investments you can make, and some that you should make sure not to.

Worst

  1. Adding a sunroom – Adding a sunroom may mean more square footage but it seems far from worth it when the average cost of a sunroom addition runs about $75,000 and produces an estimated 49% ROI. Buyers prefer to pay extra for a more functional space, like an extra bedroom or family room.
  2. Installing a pool – Although the thought of taking a dip in your own backyard sounds great, pools are mostly seen as a hassle by buyers because of high maintenance and insurance costs. Pools are often also seen as a hazard and this can narrow your eligible and interested buyers by eliminating families with young children.
  3. Home office – It is estimated only 23% of employed American’s work from home, therefore a majority of people do not need a home office. With all the technology these days it is easier than ever to virtually work from anywhere. People are more likely to plug in at their nearest coffee shop than work from a home office and the numbers show it with only a 49% ROI on home office remodels.
  4. Garage remodel or addition – Although this option may give you more car or workspace, it is not your best bet for a great return on your investment. Garage additions and remodels are expensive with not a lot of return to show at 65% ROI.
  5. Landscaping – Do not put big bucks into heavy duty landscaping. Curb appeal is important but buyers want a low maintenance landscape. Nice to look at and easy to take care of.

Best

  1. Install a steel front door – Of course updates to the façade of the home adds to curb appeal but adding a steel door actually offers more than just curb appeal. This simple update provides durability, security, increased energy efficiency and offers one of the best, if not the best, returns on your investment at about a whopping 102% ROI.
  2. Garage door replacement – Replacing your garage door is an easy and very inexpensive way to make a pretty significant update to the look of your house. Averaging at about $1,200, replacing and updating your garage door yields about 88% ROI.
  3. Wood deck addition – Adding even just a small wood deck is an easy way to increase your living area. It also adds a lot of appeal because it offers opportunity to entertain outside, cook and dine. All that with about an 81% ROI makes this improvement a popular choice among homeowners.
  4. Window replacement – Aside from just looking great replacing your windows with new energy-efficient ones can actually save you money and has an estimated ROI of 79%.
  5. Converting an attic – Although a little bit bigger of a project, remodeling your attic into a more useable space like a bedroom or guest suite can greatly improve the value and functionality of your home with a 77% ROI.

Sources: Bureau of Labor Statistics, Cost vs. Value Report, HouseLogic and REALTOR.org

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