Many homeowners mistakenly assume that any money you put into home improvement is a pretty safe investment but that isn’t the case at all. In fact, the average home renovation project only recoups about 65% of its cost at resale. If there’s even a chance that you will be selling your home sometime down the road then return on investment (ROI) is an important consideration when deciding how to allocate your remodeling budget. Here’s a look at the safest investments when it comes to home remodeling.
The most cost efficient home improvement project you could do is to replace the insulation in your attic. On average, this will cost somewhere from $1,200 to $2,000 but your ROI will be around 107%. It’s probably the only project that can actually turn a profit for you. Not only does it add to the resale value of your home but you also benefit from energy savings from the time you replace the insulation to the time you do sell your home.
A new front door
Since the front door is one of the first things people (including prospective buyers) see when they visit your home, it makes sense that it would be a wise place to invest some money. A new steel front door can cost anywhere from $1,500 to $2,500 to purchase and install but you can expect to get about 90% of that back when you sell and you may also find that you have an easier time selling your home as a result.
Depending on the state of your current siding, you may or may not wish to tackle this particular project since the ROI is a bit lower at 80 to 84% and the initial cost is higher since it costs about $12,000 on average. If your siding is a bit of an eyesore however then it’s probably a good idea. It’s certainly better to spend the money on your home’s exterior then to spend a fortune remodeling the kitchen which will only recoup about 65% of the cost.
Garage door replacement
A wooden garage door is another exterior home improvement project that’s a safe bet. Though the ROI for this project is less than vinyl siding at around 80%, it’s also less expensive that siding costing on average $2,300 to $3,000. Keep in mind that garage doors with windows are likely to get a slightly higher ROI.
Prospective buyers love hardwood flooring so while it’s a bit pricy at $5,000 to $6,000, it’s still a good project to consider. Just make sure you go with a finish that’s universally appealing and keep in mind that oak is an especially durable option that makes it a favorite among prospective buyers.
Despite the fact that kitchen and bathroom remodels are among the worst for ROI, they remain the most popular because many assume it’s what buyers want. When deciding what to upgrade and what to leave as is, you should focus on upgrades that improve the functionality of the space or upgrades that are relatively inexpensive. The small, inexpensive touches like new cabinet hardware, light fixtures, or baseboard heater covers are easy DIY projects and they tend to get a better ROI than many of the major projects.