Right now, garage door replacement, entry door replacement, stone veneer, and kitchen remodel rank highest for home improvements with the best ROI. If you’re planning a renovation and want to know that your money is well-spent, these projects bring anywhere from a 96 to 193 percent return on investment.
We gathered data from the latest Zonda Cost vs. Value Report* to help you count the cost of your home renovations. No matter the return on the project, you’ll be equipped to make an informed decision. Choosing a lower-return improvement may be worth it if it’s an upgrade you’ve always wanted.
4 Home Improvements with a Lower ROI
Low-return home renovations include:*
1. Additions
Is it worth it to put in a bathroom or a primary suite? It depends. Typically, the cost to build out can be high, without providing the equivalent return on the money you spend. The Cost vs. Value Report ranks a bathroom addition among lower-return home renovations, only recouping around 34 percent.
2. Upscale remodels
While it can have great aesthetic appeal, the price tag on an upscale bathroom remodel may only yield around a 45 percent return. An upscale kitchen remodel ranks even lower—again, because it’s hard to recoup the cost. But there’s still something to be said for personal enjoyment. Cooking in a luxury kitchen could be worth the price.
3. Accessible bathroom remodel
For many homeowners, a bathroom with a universal design may be necessary. However, it ranks at the lower end of the scale for ROI. Making a bathroom wheelchair-accessible, replacing the tub with a walk-in shower, and installing accessible storage and similar features might net a 49 percent return.
4. Home maintenance projects
Seasonal maintenance is one of the responsibilities that comes with homeownership. Projects like updating a furnace or replacing a roof aren’t optional. When the time comes, they need to be done to keep your home in good shape. Roof replacement provides around a 48 to 56 percent ROI.
With an all-in-one renovation loan, you can buy or refinance a home and get funds to renovate it, all in one loan—one application, one closing, and one monthly payment.
Contact a Cornerstone loan officer for details.
4 Home Improvements with the Best ROI
High-return home renovations include:*
1. New garage door
A garage door replacement is one of the few home renovations that may net you a lot more than what you put in—around 193 percent. The good news is that it’s not the most expensive upgrade. Replacing your garage door may cost an average of $4,513, recouping around $8,751. A new garage door helps to improve the curb appeal of your house and typically comes with a lifetime warranty.
2. Front door replacement
Putting in a new front entry door could yield a return of around 188 percent. Another advantage of this upgrade is its modest price tag, costing about $2,355. Something as simple as a new front door could boost your home’s value and help strengthen your home security.
3. Stone veneer
Similarly, replacing vinyl siding with stone veneer is a fairly affordable project (comparatively speaking) that can net one of the highest returns. Installing manufactured stone veneer may cost an average of $11,287, providing a resale value of roughly $17,291. That’s a 153 percent return.
4. Minor kitchen remodel
A minor kitchen update is one of the home renovations that comes to mind whenever you think of what to upgrade first. The kitchen is said to be the most important room in the house. It’s frequently used, and it’s a hub for socializing. A minor remodel, which includes replacing cabinet panels, drawer hardware, appliances, countertops, and flooring, could bring as much as a 96 percent return.
For the most accurate information: Click into the Cost vs. Value Report and find where data is broken down by city. This will tell you how much the cost and ROI of a project may fluctuate based on your area. It can also be helpful to consult a real estate agent to see which home renovations local homebuyers are interested in.
Looking for a Way to Fund Your Renovations?
Depending on how much equity you’ve gained, you could cash out to repair, add on, update, or renovate. Reach out to a Cornerstone loan officer to discuss your options.
*Sources deemed reliable but not guaranteed. For educational purposes only.