You’ve got your mind set on renovating your home in hopes of increasing your profits post-sale, and a freshly renovated kitchen and bathroom tops your list. But what happens if your offers start coming in lower than you had assumed they would, and all of that money you poured into home improvement didn’t seem to make a difference at all?
A strong housing market affects the return on investment (ROI) of home improvement projects. Buyers and real estate investors alike may scrutinize the amount of money spent on a renovation and question if the increased asking price is justified. If your newly renovated kitchen and bathroom upped the price considerably, then you risk losing potential buyers who aren’t interested in purchasing a home within that price range.
According to Remodel Magazine, here are the top projects that have the highest and lowest ROI for mid-range homes:
- Manufactured Stone Veneer (97.1% ROI)
- Steel Entry Door Replacement (91.3% ROI)
- Deck Addition-Wood (82.8% ROI)
- Minor Kitchen Remodel (81.1% ROI)
- Siding Replacement (76.7% ROI)
- Backyard Patio (47.7% ROI)
- Master Suite Addition (56.6% ROI)
- Major Kitchen Remodel (59% ROI)
- Bathroom Addition (59.9% ROI)
- Deck Addition-Composite (63.6% ROI)
If you want to increase your home’s resale value with worthwhile ROI home improvement projects, connect with an experienced realtor who knows the market and specializes in your style of home. A real estate agent will give you realistic idea of what your home will bring in that specific area, and help you determine which projects will yield the best ROI results.
Source: RISMedia.com, “Cost vs. Value: The Home Improvement Projects with the Highest ROI in 2018.”