The best remodeling projects for added value might be surprising.
Not all remodeling projects are created equal. If you're planning to sell and want to boost your home's value, remember that you probably won't get all of your money back. But some projects can make your home more marketable. So even if your return on investment is lower than you'd hoped, the overall good that some projects bring are worth it the long run.
Before you jump in, think about where your home's value ranks among others in the neighborhood. If it's already on the higher end, you might find yourself in a different situation. Instead of being more marketable, you could price yourself out of the market entirely. Or you could lose a big chunk of money just to make a sale.
A home valuation from eppraisal can help you get a better idea of what your home is worth, how it compares to others in the community, and whether a project or two might be the boost that you need.
Here are 5 common remodeling ideas that have the best return on investment:
#1: Fiber Cement Replacement Siding
At the top of all remodeling projects is residing your home with fiber cement siding. This project brings a pretty amazing 72 percent return on investment and it's still going up, according to Cost vs. Value. And for the average investment, which is about $13,000 in the Midwest, it outranks flashier projects such as new master suites and even bathroom remodels.
Additional bedrooms make your home more attractive to larger families.
#2: Attic Bedroom Conversion
If you've got an attic that's large enough and the budget to afford it, converting that space into an additional bedroom can really pay off. You can expect to recoup about 68 percent of what you spend, and the numbers are still improving. But this is a costly project. The average investment is just shy of $50,000.
#3: Basement Remodel
Basements have reigned for years as the classic place to find more space, and that's still true today. With a return on investment of about 63 percent, you'll recapture the majority of what you spend when you sell. But remember that basements can be riddled with problems. The average remodel costs nearly $63,000. And if your basement has moisture problems, remediation might make that number a lot higher.
A minor kitchen remodel pack the double punch of lower investment and higher return than a major remodel.
#4: Minor Kitchen Remodel
It probably comes as no surprise that kitchens make this list. But the trend is slightly down, so the 65 percent return that you could get today might be worth less in months and years to come. A minor remodel costs on average $19,000, and has a better return on investment than a major remodel, which costs closer to $55,000.
#5: Deck Addition
A new deck also ranks among the best projects for return on investment. You can expect to spend between $15,000 and $35,000 for a new composite deck. For a lower end version, you'll recoup about 62 percent of your investment. But for a more extravagant deck, you'll recapture about 56 percent.
A lot of projects that you'd typically think of didn't quite make the cut. For example, you might get less than half your money back on a new bathroom, new roof, or a master suite.
Think about remodeling projects judiciously before making the investment. While some do add value, none will return everything that you spend. Look at your neighborhood for clues. If everyone has a deck and you don't, that might be a good project to take on. If you live in an area with great schools but your house only has two bedrooms and one bath, adding on to attract bigger families might be a smarter approach.
The more you know about your home and the neighborhood, the better positioned you'll be for the big decisions about remodeling. A home valuation from eppraisal is a great place to start.
Once you enter a few small pieces of information, you'll learn the estimated value of your home and then see how it compares to others in the neighborhood. Click here for a free property valuation today, and start planning projects tomorrow.