Even if you’re not planning to sell your home anytime soon, it’s an inevitable question when you consider remodeling: How much will this improvement add to the value of my home? Surprisingly, much of the time the answer is not as much value as it costs to actually make the improvement. But some home renovations bring you more bang for your buck than others.
According to the 2018 Cost vs. Value Report, the top-ranking home improvement is a new garage door which, on average, adds 98.3 percent of the amount you spend to the value to your home, followed closely by manufactured stone veneer siding, which adds 97.1 percent, and a steel entry door, which adds 91.3 percent.
Replacing old elements, such as doors, windows and siding yields better financial returns than bigger remodeling projects, such as additions. But real estate agents and remodelers say updated kitchens and baths still bring a significant payoff, especially at resale time. The report found that a minor kitchen remodel yielded a higher return than bath project, adding 81.1percent of the project’s cost back to the home’s value.
Renovations within the existing envelope of your home—those that don’t require you to build an addition or expand the roof and foundation—often return more value than building extra rooms onto your home. Many homeowners focus on updating their home with new siding, windows and insulation. For people who plan to stay in their homes, investing in those projects, as well as in more energy-efficient heating and air conditioning systems and appliances, saves money all year.
So, if you are in the market for a home remodel, here are the home renovations the study shows provide the biggest bang for your buck, as well as projects that generate the lowest return.
Greatest percentage return on investment:
Renovations that yield the smallest return:
Whether you are buying your dream home or want to make improvements through a home equity line of credit, we invite you to take advantage of resources and specialized programs provided by Busey Home Mortgage.p>