More and more of our clients are expressing interest in purchasing homes in need of remodeling. Some may like the thrill of making a space theirs, while others believe it’s more cost effective to do the work themselves. Whatever the case is, it’s important to know and understand home remodeling ROI.
With over $361 billion spent on remodels in 2016, we hope that most are doing their research regarding which projects will result in the highest ROI. The following remodeling projects were the most popular at the time of the survey.
- Replacing systems: plumbing, electrical, HVAC
- Necessary outdoor maintenance: roofing, siding, windows, doors
- Indoor upgrades: insulation, flooring
- Room upgrades: kitchen and bath remodels
- Outdoor upgrades: porches, decks, garages
Now, let’s talk about the home remodeling ROI on various projects. Keep reading to discover six home improvement projects with the highest ROI.
The average ROI for a new roof at an estimated cost of $8,000 is 109%. Meaning that replacing your roof may actually lead to you making money on the improvement at resale.
Minor bathroom remodel
The average ROI on a minor bathroom remodel is 102%. This is an estimated ROI for a project costing about $10,500, which is roughly enough to replace the tub, tile surround, floor, sink, and fixtures. If you’re not looking to spend quite that much, a good starting point is caulking the tub, painting the walls, and removing any outdated decor.
Minor kitchen remodel
You can get about 98.5% ROI on a minor kitchen remodel. This estimation is assuming you’ll spend about $15,000 to update the kitchen. These upgrades can include refacing cabinets, purchasing a new oven and cooktop, replacing the sink and fixtures, and installing laminate countertops and a resilient flooring.
Hardwood floors are very popular right now and have a pretty high ROI at 91%. This ROI is based on the assumption that your flooring will cost $5,500. Pro tip: If you want to save on hardwood floors, opt to install them yourself to cut the cost of labor.
Steel entry door
You can’t put a price on a sense of security. If you spend about $1,500 on a new steel door, you can expect about a 91% ROI at resale.
Installing a mid-range garage door at about $1,600 can result in 91% ROI.
If you’re looking to buy a home to fix up, make sure to keep the home remodeling ROI in mind. And if you’re looking to complete a major remodel on your current home, we can refer you to a realtor that can help you determine the financial benefit of a major remodel in your neighborhood. Reach out to us at (402) 991-5153. We’d love to help put you in your very own fixer upper!