You watch HGTV and think, “Hey, I really like that.” The bathroom looks like a spa. The backyard looks like a resort. The kitchen looks like a dream.
The potential for home renovations seems practically endless—home improvement shows demonstrate this. And while many justify the costs of their improvements by claiming they increase the home’s value upon its sale, the reality is the return on investment (ROI) may not be as significant as they think. Sometimes, you spend a dollar and only get $0.50 in increased value.
What renovations provide you with the best ROI? A recent study provided the answer. Below are the top renovations for ROI. Provided are the renovations, the cost, and the amount recouped.
|Garage door replacement||Manufactured stone veneer||Minor kitchen remodel||Wood deck addition|
|Average resale value||$3,520||$8,449||$18,123||$10,083|
Focusing on curb appeal seems to be a pretty good bet when it comes to home improvements, especially if you are looking to sell. But don’t over-improve your home, which is when you experience a significant diminishing return on your investment (a $50,000 kitchen for a $150,000 home doesn’t make sense).
There is a time for other renovations as well. You should enjoy the home in which you live. You might not be able to wait until 1970s wood paneling becomes trendy once again. Of course, you could just turn the panels horizontally and call it shiplap.
Enjoy your home, both inside and out. But carefully consider the costs and returns of home renovations. Make sure your home remains a blessing instead of a burden.