Home Improvement Renovations – ROI
According to Remodeling Magazine, the ROI (Return On Investment) on home improvement renovation projects faired much better than overall home values for 2007-2008. While home values continue to drop the latest data shows much smaller drops in the ROI on many home improvement renovations. ROI is a very simple term that compares the cost of a project versus the value of it afterwards. For example, a 100% ROI on a kitchen remodel would indicate that if you spent $20,000 on the project you would expect to recoup $20,000 when you sell the home. Whereas a 50% ROI would indicate that same $20,000 price tag woud only return $10,000 at selling time.
Top 5 Home Improvement Projects
The following list includes the top 5 home improvement projects based on best ROI. These are the national averages which may be different in regional locations.
- Wood Deck Additions – Adding a deck to your home is one of the best returns on your investment. Adding decks is also a project that most DIY folks are able to tackle if planned properly. Decks create an outdoor extension or our homes and they are highly sought after in todays real estate market.
- Vinyl Siding Replacement – More and more homeowners are installing vinyl siding on their homes. It’s not hard to understand why when you look at the cost of painting a home today. This is especially true because of the great selection of vinyl siding projects on the market today. We actually built our new home with Certainteed Monogram siding which looks like real wood siding!
- Minor Kitchen Remodel – Minor kitchen remodels have always been a great ROI. Minor kitchen remodels are a great idea especially in today’s economy. Simple projects like painting your cabinets, having a new countertop installed or even new appliances can make a major impact on your kitchen and your ROI. The best part is simple kitchen remodels won’t disrupt your household!
- Window Replacement – Both vinyl and wood window replacement projects score high on ROI. Now is a great time to take advantage of the Stimulus Tax Credits For Energy Efficient Home Improvements. Right now you can receive some great tax credits when you install energy efficient replacement windows that meet certain guidelines. This greatly increases the ROI even further!
- Bathroom Remodel – Bathroom remodels are very popular and they typically bring a very good ROI. If you’re planning on doing a bathroom remodel be sure to take your time and fully plan the project. Bathroom remodels are typically quite expensive and disruptive to your house so be prepared. When we were expecting our first child I remodeled or master bathroom, trust me when I say you don’t want to do that!
There you have it, a list of the Top 5 Home Improvement Projects based on the best ROI. In today’s declining real estate market it’s extremely important to evaluate any remodeling project. This is especially true if you plan on selling in the next 5 to 10 years.