With spring making its official arrival, and summer right around the corner, homeowners across the country are starting to think about their spring-cleaning projects. We know. It’s not the most glamorous part of spring. But what if you tackled projects that actually added value to your home at the same time?
Before you start filling your “honey-do” list with maintenance requests like cleaning the gutters and replacing the garbage disposal, we thought we’d share some of the leading remodeling projects that historically deliver the best return on your investment. Yes, the gutters still need cleaning. But tackling any one of the projects below will provide a positive value-add that you can be happy about.
How to determine if a remodeling project is worth the effort?
According to Remodeling Magazine’s 2015 Cost vs. Value Report, where you live greatly impacts the types of projects that will bring the highest return.
In the Northeast, for example, where there is often an abundance of inclement weather, home improvement projects such as adding storm windows or waterproofing basements might have a bigger impact than they would in, say, the Southeast.
Conversely, in the Southeast, home improvement projects such as landscaping or adding a patio room to enjoy the nice weather, or even an outdoor kitchen, would have a greater impact on the valuation of the home after completion.
The cost-value ratio used in this report expresses resale value as a percentage of construction cost. When cost and value are equal, the ratio is 100%. On the other hand, when the value is higher than the cost, the ratio exceeds 100%.
With that being said, here’s a list of some of the top remodeling projects nationally, which can help boost your home’s value this spring.
#1: Replacing Your Entry Door
Nationally, replacing your home’s door with a steel entry door was a winner in the ROI department. It recouped all its costs – and then some – in more than 43 markets of the 102 markets surveyed across the country. On average, the replacement will cost you $1,230, with a return of approximately 101.8%.
#2: Updating Your Garage Door
Another value-add project you can tackle this spring is your garage door. According to the cost vs. value survey, replacing a home’s garage door topped 100% ROI in 28 markets. The average cost for a new garage door is $1,595. Not ready for a full replacement? We love these 10 ways to upgrade your garage this weekend.
#3: Stone Veneer Projects
According to the same cost vs. value survey, projects involving manufactured stone veneer also performed well in the ROI department – topping 100% ROI in 27 of the 102 markets surveyed. The national average of a stone veneer job is $7,150, with a return of 92.2%. That’s not too shabby considering this project ranks higher than adding a family room, master suite or kitchen remodel.
#4: Replacement Wood Windows
We all know that replacing windows can help with energy savings, but according to the cost vs. value study, it can also increase your home’s value. Projects where windows were replaced with wood windows topped 100% ROI in 16 markets. Nationally, the average cost of this type of job is $11,341, with homeowners seeing a return of approximately 78.8%. Vinyl windows aren’t far behind. They offer an average return of 72.9% nationally.
#5: Minor Kitchen Remodel
We’re not suggesting that you add “gutting the kitchen” to your spring-cleaning list, but some small kitchen remodeling projects can certainly offer a great return. Approximately 15 markets in the survey found returns greater than 100% on this type of project, while nationally the average came in at 79.3%.
For the purposes of this survey, the remodel included new cabinetry, new hardware, new appliances, new countertops, and a mid-priced sink and faucet. Not ready to take the leap? Here’s some quick and easy kitchen updates from the folks at Better Homes and Gardens.
#6: Vinyl Siding Replacement
This is an interesting project, as it’s been trending upwards for several years and approximately 13 markets saw a 100% or more return on their investment with this project. Nationally, the average cost to replace 1,250 square feet of existing siding with new vinyl siding is $12,013, with an 80.7% ROI.
Other projects high on the ROI list include: converting an attic into a bedroom (77.2%), a basement remodel (72.8%), fiberglass entry door replacement (72%), and bathroom remodels (70%).
Markets With the Highest ROI on Remodeling
As we mentioned before, where you live makes a big difference when it comes to the return on investment you will see for any of these and other projects. That said, within the 102 markets surveyed in the 2015 report, 7.3% of all projects had payoffs that exceeded 100%. Of the 36 projects included, almost all of them saw a positive ROI in San Francisco – where the average payback for all projects was 100.3%.
Don’t live in San Francisco? Honolulu came in second with an average of 94.6%, while San Jose, California (87.1%), Riverside, California (84.1%), Sarasota, Florida (80.7%), Austin, Texas (78.6%), and New Orleans (77.6%) also gave their residents a great ROI for the projects considered in the survey.
Need Financing for Your Project? Fund Your Renovation with a Cash Out Refinance
Whether you’re considering tackling one or several of these projects this spring, refinancing your home can be a savvy and efficient way to cover the costs of these improvements.
At Lenda, we do refinancing a little differently. No telemarketing, no paper, and no hassles. We allow you to refinance your home loan online, with our simple and secure process. Our clients save thousands of dollars in closing costs, and enjoy a the fastest closing times in the industry. Get your quote online in seconds today! Here’s to a happy and rewarding spring!