According to the most recent Cost vs. Value report, nine of the 10 most cost-effective home projects are completed outside the home. Kitchen and bath remodels may still be on the top of many buyers’s lists, but they may not give you the same return on your investment as upgrades you make to your exterior. Many of these upgrades can actually lower your energy costs — sellers can find a lot of value in making some of these upgrades. This continual value may explain why the return on investment is so high.
The top ten return-on-investment projects and percentage returned:
- Entry Door Replacement (steel) — 102.10%
- Garage Door Replacement — 83.90%
- Siding Replacement (fiber-cement) — 80.00%
- Deck Addition (wood) — 72.80% / Minor Kitchen Remodel — 72.80% (tie)
- Window Replacement (vinyl) — 72.60%
- Siding Replacement (vinyl) — 72.40%
- Window Replacement (wood) — 72.40%
- Siding Replacement (foam-backed vinyl) — 72.40%
- Attic Bedroom — 72.20%
- Window Replacement (vinyl) — 71.60%
Your curb appeal is your first impression, and in this market a first impression is so important. If you’re considering some upgrades to your current home, and your exterior needs some love, think about new windows or siding. The impression and functionality those exterior upgrades offer can make the difference between your home selling and not selling in the future.
When you look at these numbers you can notice one thing: sellers don’t make money on upgrades, they only earn back a portion of what they put in. Maintenance, comfort and pleasure are the main reasons to perform any upgrade. You often do these upgrades without thinking of resale, but of simply keeping your home comfortable. If you need new windows or want a prettier kitchen, do it for you. Just keep resale in mind before you go
overboard on any upgrade, making sure you don’t hurt a future home sale with wild changes. You live in your house now — you should love your house while you’re living in it.
