As more people are continuing to work from home, it’s easier to notice areas that can use improvement. Renovations can have practical and aesthetic value, while also boosting curb appeal if you choose to sell or lease your home. Buyers are also more likely to favor move-in ready properties with modern updates.
But which renovations are worth investing in? Recently, Remodeling Magazine assessed 150 markets across the nation, comparing the average cost of 22 remodeling projects to determine which renovations yielded the highest ROI at resale. Read below to discover trending home renovations before hiring contractors.
How Home Additions Can Increase Your Home Resale Value
1. Deck Addition
Decks enable homeowners to make the most of their backyards while extending property square footage. For instance, according to Remodeling Magazine’s report, the average cost to install a wooden deck is $14,360, but this project adds a $10,355 resale value. This provides a 72.1% cost recovery.
Moreover, the cost recovery margin can vary depending on material and maintenance. For example, the average price of a composite deck is $19,856, but composite decking generally requires less maintenance than wood. While this prospect may appeal more to buyers, the resale value sits lower than wood decking at $13,257, reflecting a cost recovery of 66.8%.
2. Garage Door Replacement
A new garage door can boost curb appeal significantly. According to the National Association of the Remodeling Industry, the average cost of a garage door replacement is roughly $2,100 as of 2019. With that being said, the total cost can fluctuate to an average spending of $3,907 based on materials, location, hardware replacement, resizing the opening, and waste removal and disposal. Reports by the National Association of Realtors (NAR) and Remodeling Magazine found that homeowners were able to recoup almost 95% of the costs with an average resale value of 93.8%.
3. Kitchen Remodel
Average cost: $26,214
Average resale value: $18,927
Cost recouped: 72.2%
The kitchen receives plenty of traction, so investing in minor updates to make the space more functional and reflective of your personal taste yields major benefits. From extra space to cook and entertain to upgrading to more energy-efficient appliances, opportunities abound.
Smaller kitchen remodels can include:
- Installing new countertops or sinks
- Replacing flooring
- Replacing hardware
- Resurfacing, painting, or replacing cabinets
- Repainting the walls
While costs can vary depending on size and location, according to Remodeling Magazine, the average minor to mid-range kitchen remodel will cost you $23,452, with a resale value of $18,206. In other words, you’re looking at a 72.2% cost recouped.
4. New Siding
Replacing your home’s siding can enhance your property’s exterior as well as more efficiently protect it from the elements and extraneous energy usage. In turn, this leads to less annual maintenance. Worn siding can lead to moisture-related problems down the road such as molding, rot, and pests like termites and woodpeckers. Extreme weather patterns can also result in warping, cracking or sagging. Choosing to upgrade to popular, durable materials such as vinyl and fiber cement can increase buyer appeal, making this a profitable home addition.
For example, Remodeling Magazine reports the average cost of vinyl siding installation is $14,359. With an average resale value of $10,731, the cost recouped is 74.7%. Likewise, the average cost of fiber cement siding is $19,500, which offers a $13,618 resale value and a cost recoup of 69.4%.
5. Vinyl Window Replacement
New windows save homeowners energy by effectively sealing the interior from the elements, thereby reducing heating and cooling expenses. Vinyl windows in particular are low-cost, energy-efficient, and low-maintenance, making them a popular window remodel choice. They’re also available in a wide range of colors and styles to suit your preference. Remodeling Magazine found that the average cost for a vinyl window replacement is $17,641. This yields an average cost recoup of $12,761 with a resale value of 72.3%.
If you have a structured settlement or annuity, you may be eligible to turn those payments into a lump sum of cash. Call JG Wentworth today at (877) 227-4713 to get a free, no-obligation quote. Our helpful team can answer any questions you have about the transaction process.
- How Much Do Garage Doors Cost | Bankrate
- Cost vs. Value 2020 | National | Remodeling (hw.net)
- Remodeling Impact Survey (nar.realtor)