We know that U.S. homeowners collectively spend over 300 billion dollars each year doing some form of home renovation. It’s a thriving industry. But what makes the most sense in terms of dollars spent? The results of a 2019 research study by remodeling.net lists these as the top 10 for returning the most on your investment. (https://www.remodeling.hw.net/cost-vs-value/2019)
- Garage door replacement – 98.3%
- Manufactured stone veneer – 97.1%
- Entry door replacement – 91.3%
- Wood deck addition – 82.8%
- Minor kitchen remodel – 81.1%
- Siding replacement – 76.7%
- Vinyl window replacement – 74.3%
- Universal bathroom design – 70.6%
- Bathroom remodel – 70.1%
- Roof replacement – 68.4%
I can’t imagine that deriving these percentages is an exact science, but they are a helpful resource when considering multiple home renovations. Sorting out what makes the most sense for you can be the hard part. Here are some common sense things to consider:
- Necessity trumps wants. You might want a new kitchen, but you have a leaky roof or foundation. The shine of the new kitchen will be forgotten once the potential buyer gets a whiff of the musty basement.
- What is typical for your neighborhood? Let’s say you live in a neighborhood with mostly 4 bedrooms colonials that are between 15 and 20 years old. It’s a good bet that remodeled kitchens are pretty typical and a valuable selling feature. So if you were deciding between a new bathroom and a new kitchen, the kitchen might be the better idea and the bathroom can survive with only a new vanity and shower door. Plus kitchens are so often the “social center” of the house these days.
- What is atypical for your neighborhood? This can be a bit more risky, but it can also make your house stand out in the crowd. Let’s say the builder “typically” built rear decks that were say 12’ x 16’, and you expand to 3-times that size to a more inviting space to entertain. Potential buyers will take notice, Another example is manufactured stone veneer as it is wildly popular in new construction. I’ve seen whole neighborhoods showcasing stone veneer work. But if you live in a subdivision with no stone veneer, again this could add an extra wow factor, setting your home apart, knowing the value of curb appeal. Plus it is number two on the list for ROI.
- Don’t renovate yourself out of the neighborhood price range. Know the upper limit.
- Make it fit your lifestyle. Everybody can give you advice, but you are the ones living in your home. Return on investment is great, but not everything.
- Don’t neglect maintenance. When it’s time to sell, a home inspector will poke around and provide a list of what needs fixed. The shorter the list, the happier everyone is. Never confuse maintenance dollars with renovation dollars. Sadly, the lack of maintenance can lead to unnecessary repairs. Wood windows are a good example.
I hope this was helpful. The bottom line is to know the approximate returns on investment, use common sense, and make the renovations that best enhance your lifestyle.
-Steve Mudre