If you’re planning for a future sale and curious which home improvements will recoup the greatest return on investment, we’re here to help! According to Zillow’s Consumer Housing Trends Report, 72% of sellers took on at least one home project in preparation for their sale. Buyers have become more selective and cost-conscious as market conditions shift, so strategic renovations can make all the difference in attracting strong offers.
Where homeowners tend to go wrong is the misconception that their updates will yield a 100% ROI. Just because you spend a certain amount on an upgrade doesn’t mean buyers will automatically pay that much more for your home. The cost of a remodel and its market value are rarely equal and can be impacted by market conditions, buyer preferences, and location. Even high-end improvements are limited to your area’s ceiling. (Learn more about over-improvements here.) It’s also important to differentiate between maintenance and improvements. Some projects (like replacing a roof or HVAC) are essential, but they protect your home’s value rather than dramatically increasing it.
Before you proceed with upgrades, make sure you tackle maintenance needs first then you can plan for value-boosting projects. The following data is tracked by the Journal of Light Construction, a leading resource for residential and light commercial contractors.
GARAGE DOOR REPLACEMENT
Average Job Cost: $4,672
Resale Value: $12,507
Cost Recouped: 268%
STEEL ENTRY DOOR REPLACEMENT
Average Job Cost: $2,435
Resale Value: $5,270
Cost Recouped: 216%
MANUFACTURED STONE VENEER
Average Job Cost: $11,702
Resale Value: $24,328
Cost Recouped: 208%
FIBER-CEMENT SIDING REPLACEMENT
Average Job Cost: $21,485
Resale Value: $24,420
Cost Recouped: 114%
MINOR MIDRANGE KITCHEN REMODEL
Average Job Cost: $28,458
Resale Value: $32,141
Cost Recouped: 113%
VINYL SIDING REPLACEMENT
Average Job Cost: $17,950
Resale Value: $17,313
Cost Recouped: 97%
BACKUP GENERATOR
Average Job Cost: $13,534
Resale Value: $12,902
Cost Recouped: 95%
WOOD DECK ADDITION
Average Job Cost: $18,263
Resale Value: $17,323
Cost Recouped: 95%
COMPOSITE DECK ADDITION
Average Job Cost: $25,096
Resale Value: $22,199
Cost Recouped: 89%
MIDRANGE BATHROOM REMODEL
Average Job Cost: $26,138
Resale Value: $20,915
Cost Recouped: 80%
VINYL WINDOW REPLACEMENT
Average Job Cost: $22,073
Resale Value: $16,657
Cost Recouped: 76%
BASEMENT REMODEL
Average Job Cost: $52,012
Resale Value: $36,905
Cost Recouped: 71%
WOOD WINDOW REPLACEMENT
Average Job Cost: $26,781
Resale Value: $18,764
Cost Recouped: 70%
ROOFING REPLACEMENT - ASPHALT SHINGLES
Average Job Cost: $31,871
Resale Value: $21,501
Cost Recouped: 68%
BATHROOM REMODEL - UNIVERSAL DESIGN
Average Job Cost: $42,183
Resale Value: $25,812
Cost Recouped: 61%
MIDRANGE BATHROOM ADDITION
Average Job Cost: $60,645
Resale Value: $32,347
Cost Recouped: 53%
MAJOR MIDRANGE KITCHEN REMODEL
Average Job Cost: $82,793
Resale Value: $42,130
Cost Recouped: 51%
METAL ROOFING REPLACEMENT
Average Job Cost: $51,865
Resale Value: $25,972
Cost Recouped: 50%
Some projects pay out in lifestyle ROI by making your space more enjoyable, while others offer financial ROI by increasing your property value. The key to recouping your costs is by choosing improvements that align with your objective and budget. If you have questions regarding your home value or need input on upgrades, make sure to contact your Danberry Realtor!