The value of any home renovation is a combination of actual return on investment when it comes time to sell the house and personal enjoyment during the remaining time you live there. Some renovations have a firm utilitarian purpose, while others are more personal and taste-oriented and may not translate to actual value for the next buyer. The following are five renovations that give you nearly 100 percent return on investment:*
Replacing a Garage Door
The average cost to fully replace a garage door is about $3,900 The average resale value is around $3,700, which makes your recouped cost about 95 percent. This immediately adds curb appeal to the front of your house, which can't be underestimated when you go to sell it. There's also a utility aspect to it as well since a new, attractive and sturdy garage door can be expected to last.
Minor Kitchen Remodel
Upgrading your kitchen to make it look more modern and be more functional has an average cost of $26,000. The average resale value is at $19,000, which means that you recoup roughly 73 percent of it. Kitchens are one of the top areas of the home at which buyers look. Some upgrades that fall under this category include replacing countertops and flooring, installing a new sink and faucet, adding more modern appliances and refacing cabinets.
Adding a Deck
Another area where buyers see extra value is in a deck. This is especially true of houses with large yards. The average cost of adding a wood deck is around $17,000. The average additional resale value is roughly $11,000, which comes out to around 65 percent value recoup.
Replacing Siding
Old siding might be one of the biggest turnoffs when it comes to curb appeal. Replacing old siding has an average cost of around $19,500, and it will usually recoup about 69 percent of that value in resale. New siding isn't just functional, but it also adds immediate curb appeal that buyers will see the moment they pull up.
Replacing the Front Door
Replacing your current front door with a steel door will cost about $2,000, but will recoup about 65 percent of that upon resale. These doors are more durable, more secure and generally more attractive than older wooden doors.
Along with five renovations that will typically give you a solid return on investment, there are those that may actually hurt your home value, on top of being expensive. Here are five renovations to avoid when considering a minor home remodel:
Fancy Light Fixtures
The problem with elaborate light fixtures is not just that they can be very expensive, but they tend to follow trends. The stunning fixture you buy now might be completely outdated in only five years. Further, lighting fixtures are very taste-oriented. Buyers who like simple styles won't be impressed.
Wallpaper
Another renovation that depends on taste and trends is wallpaper. Having too much of it can present itself as a major headache to buyers when they think about having to remove it. If you plan to sell your house and you already have wallpaper, a good idea is to remove it and replace it with fresh paint.
Bold Paint
However, when you go to refresh your paint, make sure that you're choosing neutral and unobtrusive colors. Bold paint colors tend to be another major turnoff to buyers.
Trees
Adding a bunch of ornamental trees might seem like an attractive way to improve your landscaping. However, your future buyer may see nothing except a mess from leaves and/or needles. Like wallpaper, it might be something that buyers will see as a potential removal headache.
Combining Bedrooms
This is another expensive renovation that can hurt you at selling time. Each bedroom adds value to your house, which means if you remove a bedroom, you've removed value. Families with young children often want them to have their own bedrooms, even if they're small.
The bottom line of home renovations is that anything that is too personalized or trendy is likely to be a bad idea. Stick with renovations that are functional for anyone who owns the home.
*Information sourced from "Key Trends in the 2021 Cost Vs. Value Report," by Clayton DeKorne. All figures used are national averages.
