In a hot real estate market, big renovation investments like adding a master bedroom or a second story addition may result in a high return on your investment. But in a cooler real estate market, it makes sense to measure your ROI (return on investment) for planned renovations before selling your home. Investing in mid-range renovations is a wise move.
According to the Remodeling 2017 Cost vs. Value Report for the Houston area, the following five mid-range renovations yield the highest return on your investment.
Manufactured Stone Veneer
Replace your home’s vinyl siding with manufactured stone veneer. This mid-range project typically costs upwards of $7,500, but adds more than $9,000 to the resale value. This tops the list with a 120 percent return on your investment. This professional installation includes removal of the existing vinyl siding from the street-facing façade, and adding adhered manufactured stone veneer. Keep in mind that buyer priorities may change in time, but curb appeal always ranks high on a the list.
Garage Door Replacement
Don’t overlook another part of your home’s curb appeal. Replace your tired old garage doors with brand new set. Invest around $1,600 into this project, and your resale value increases by $1,580. You will recover 98 percent of your investment.
Entry Door Replacement (Steel)
Choose your door materials carefully. Fiberglass doors nice, but you’ll spend more than $3,200 and will likely get less than $2,200 in return. Spend less than $1,400 on a high quality steel door and you’ll add $1,200 to your resale value. You’ll spend less and recoup upwards of 85 percent of your investment. The added strength and increased home security is attractive to buyers, and, like the other entries on this list, will help you sell your home quicker.
Minor Kitchen Remodeling
Before you completely tear apart your kitchen and replace everything from the floor to the ceiling, consider this: a major kitchen remodel will costs more than $59,500 and will only add $32,885 to the resale value. This is only a 55.3 percent return on your investment.
Instead, give your kitchen a minor face lift for a much lower investment and a higher ROI. Leave the cabinet boxes intact and replace the cabinet and door fronts, including new hardware. Replace the oven and refrigerator with new, energy-efficient models, and add a new sink and faucet. Repaint the trim and replace the flooring, and your $19,800 investment adds $16,500 to resale value, with an 83.4 percent ROI.
No amount of paint, siding, or window dressing will matter much to a buyer if the roof is leaking. Upgrade to a fiberglass asphalt shingles with a minimum 25 year warranty for an average investment of $19,000. You will add $15,230 to your resale value, for an 80.2 percent ROI.
Whichever options you decide are best for your home, don’t forget to hire a contractor to make sure the basic infustructure is sound. Curb appeal matters much less to buys when the house is filled with leaks and odd smells. With a contractor and some of these mid-range renovations, your home will become a serious contendor in a competitive market.