As I talk with homeowners who are thinking about remodeling or making upgrades prior to selling their home, I often get the question about what upgrades and renovations really add value to their home. The truth is that some upgrades add almost no value to a home and other renovations costs are recouped above 90%.
You should know which home renovations add the most value regardless of how long you plan to live in your home. Home remodeling projects were analyzed and the six that deliver the highest returns according to Bankrate.com in an article by Jennifer Franklin and their analysis are listed below.
1. Garage door replacement
- Average cost: $3,611
- Average resale value: $3,520
- Cost recouped: 97.5 percent
A good-looking garage door tops the list when it comes to getting cash back on your investment when you decide to sell your house, according to the 2019 Cost vs. Value report. The estimate for this job is based on the cost of removing and disposing of an existing 16-by-7-foot garage door (or two-car garage door) and replacing it with a new four-section garage door with heavy-duty galvanized steel tracks, assuming the motorized garage door opener is compatible. This curb-appeal enhancer will get you back almost every dollar you spent on it when you sell your house.
2. Manufactured stone veneer
- Average cost: $8,907
- Average resale value: $8,449
- Cost recouped: 94.9 percent
Replacing vinyl siding with stone veneer on part of your home, such as an entryway, is a big curb-appeal upgrade for your home. For this project, existing vinyl siding is replaced with adhered manufactured stone veneer. This average cost estimate is based on installing 36 linear feet (LF) of sills, 40 LF of corners and one address block, with materials including two layers of a water-resistant barrier, corrosion-resistant lath and fasteners and more. This cosmetic improvement and accent design element is likely to catch the eye of a potential buyer and can allow you to recoup nearly 95 percent of your renovation costs.
3. Minor kitchen remodel
- Average cost: $22,507
- Average resale value: $18,123
- Cost recouped: 80.5 percent
Creating a modern-looking and functional kitchen can add more than just value to your home: it can boost your enjoyment of everyday activities like cooking, entertaining friends and sharing meals with your family. However, potential buyers see the intrinsic value of this kind of upgrade. On average, you’ll recoup a little more than 80 percent of the cost of a minor kitchen remodel. In a remodeling project of this kind, you might replace appliances with new, more energy-efficient models, reface cabinets with new shaker-style wood panels, install new countertops, replace hardware, install a new sink and faucet, add new flooring and repaint.
4. Deck addition (wood)
- Average cost: $13,333
- Average resale value: $10,083
- Cost recouped: 75.6 percent
If you’re lucky enough to own a house with a big yard, having a wooden deck can be an extra enhancement to enjoy the outdoors around your home. The average cost of adding a wooden deck from scratch (estimated based on a 16-by-20-foot deck, including a railing system with pressure-treated wood posts, railings and balusters) is approximately $13,333. But the good news is that this feature, which also includes a built-in bench and planter, can hold more than 75 percent of its value come sale time.
5. Siding replacement
- Average cost: $16,036
- Average resale value: $12,119
- Cost recouped: 75.6 percent
Old, dilapidated siding can make even the nicest house look worn-out. For the average home, replacing 1,250 square feet of old siding will cost you just over $16,000 and you’ll get back roughly three-quarters of that investment upon resale. This upgrade includes the factory trim at the openings and corners.
6. Entry door replacement (steel)
- Average cost: $1,826
- Average resale value: $1,368
- Cost recouped: 74.9 percent
You will recoup nearly 75 percent of your cost by replacing your main entry door with a 20-gauge steel door, complete with clear dual-pane half-glass panel, jambs and an aluminum threshold with composite stop. These doors come factory finished with the same color on the front and back sides.
Are you preparing to sell your home? Let’s talk before you prepare to list you home to make sure that you are taking the best steps to maximize the return on your sale. I can even run numbers for you to to help you understand what things mean for money in your pocket once your home sells.