Best Home Improvements with the Biggest ROI
According to Remodeling Magazine, the top projects for homeowners to regain investment dollars upon resale are replacement based. Seven out of the top 10 are siding, window, and door replacement projects.
The high value of replacement projects is partly due to their relatively low cost compared to adding on or extensive remodeling. On average, replacement projects cost less than $19,000, with the exception of roofing projects.
One of the reasons the magazine listed higher return on investment with replacement projects was the curb appeal factor. Apparently buyers are influenced by a better curb appeal and will buy homes that have updated exteriors.
Another factor Remodeling Magazine listed was the appeal for lower operational and maintenance costs. Homeowners want to reduce the time and the cost to maintain their homes, and those with lower operational costs have greater appeal.
Specifically, here are the top projects for best ROI:
– #1 for six of the last seven years – Fiber-Cement Siding – 78% Cost-Value Ratio
– Garage Door Replacement – 71.6% (jumping from 13th to sixth due to lower national average project cost)
– Foam-Back Vinyl Siding Replacement – 69.6%
– Vinyl Window Replacement – 69.1%
Overall, the 2011-12 Remodeling Magazine Report says that construction costs continue to drop, though at a slower rate than last year. With the drop in resale value, the overall cost-value ratio of 57.7% is roughly the same as the year as last year. This 3-point slip is smaller than last year’s 3.8-point decline and may signal that housing values are nearing the bottom, according to the magazine’s reporting.
For more information, see the full report on the magazine’s website.