Not everything you update in your home will actually increase the value of it. For example, converting your garage into a second family room can detract from your home’s value because it doesn’t appeal to all buyers. Something that you really want in your home might end up being the opposite of what someone else really wants in their home. So, if you are planning to do some renovating in 2016, what should you invest in?
Every year, the cost vs. value report from remodeling.net ranks home improvement projects based on initial cost and the return on investment of the project. You might be surprised to see what the top improvements are! So let’s get started.
10) Two Story Addition:
Need some extra space? It might be time for you to consider putting in a brand new master suite. New to the Top 10 this year, the two-story addition includes adding a family room on the first floor and a bedroom with an attached bathroom on the second level. As the most expensive renovation on the list, this is a big budget project that will completely transform your home!
Average cost: $171,056
9) Basement Remodel:
Finishing the basement of your home creates more livable square footage. More usable square footage in your home will make buyers willing to pay a little more than if you had an unfinished basement. So go ahead, make yourself the man cave of your dreams or a family room for everyone to enjoy. With an average 70% return on investment, you deserve the extra space.
Average Cost: $68,490
Resale Value: $48,194
8) Roof Replacement:
Have you been putting off getting your outdated roof fixed up? I think you have finally run out of excuses. New to the list this year, roof replacement comes in strong at #8! Not only will your home’s curb appeal skyrocket, but updating your roof might help cut down on your heating and cooling costs. Sounds like a good idea to me!
Average Cost: $20,142
Resale Value: $14,446
7) Deck Addition:
Let the summer barbecues begin! Adding a deck or patio to your home adds extra living space. Buyers love outdoor space and it improves your home’s curb appeal. Deck additions on average cost about $10,500, which is relatively inexpensive as far as home renovations go. So get yourself a new hammock then kick back to enjoy your 75% return!
Resale Value: $7,850
6) Siding Replacement:
Giving your home a facelift and replacing old siding with Vinyl siding is a very affordable and valuable renovation. Apart from adding value to your home, new siding will boost your curb appeal and make buyers fall in love with your home.
Resale Value: $10,857
5) Minor Kitchen Remodel:
A minor kitchen update can be as simple as replacing old appliances with new energy-efficient models or even replacing a laminate countertop with natural stone. A relatively easy renovation costing an average of $20,000 can add about $16,000 dollars to your home’s value with a return of around 83%. Not bad, considering most minor kitchen renovations can be done in a weekend!
4) Entry Door Replacement
Last year’s most profitable renovation comes in at #4 this year! This quick renovation can be done in an afternoon and has an average cost of about $1,300. If you are looking for a quick and easy update to your home, why not start with the front door?
Resale Value: $1,217
3) Garage Door Replacement:
Bet you weren’t even thinking about the garage when you were planning your next renovation. Well, maybe it’s time to start considering it. Replacing your garage door is inexpensive and has a huge 92% return on investment.
Average Cost: $1,652
2) Manufactured Stone Veneer:
Adding some stone to the exterior of your home is a great way to boost your curb appeal with a timeless look. The 93% return on investment for your renovation also won’t be hard to get excited about either. Buyers always pay more for homes with better curb appeal and this is no exception.
Average Cost: $7,519
1) Attic Insulation with fiberglass
This renovation is brand new to the list and already blowing the competition away! If you are looking for an inexpensive renovation with a huge return on investment, this is the reno for you! Updates include air sealing the attic to stop air leakage from the rest of your house. Then add fiberglass insulation on top of existing insulation or by itself to finish the job. This renovation not only has a huge return of 117% but will also lower your monthly cooling and heating costs!
Average Cost: $1,268
Resale Value: $1,482
There you have it, the top 10 most profitable home improvements- now get out there and start renovating!
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