There’s a pretty good, statistical chance that you’re thinking about improving your home. According to research from Scarborough, more than half (53%) of U.S. homeowners have made some sort of home improvement in the past 12 months, with about 71% planning to make one this year. Of those who did improve their homes, 56% spent $1,000 or more.
Yet what most homeowners don’t really think about is how home additions and improvements should, by definition, improve a home. They should not only make a home more functional, more aesthetically pleasing, and more enjoyable, they should also help increase the property value, providing a high return on investment. After all, who wants to invest hundreds or thousands into a home, only to lose it all when selling it?
Here are a few of the home additions and remodels that homeowners can see a high return on.
Small Kitchen Renovations.
Minor kitchen remodeling projects provide homeowners with an 81.8% return on investment, which means these home additions and improvements will recoup four fifths of an investment upon resale. Now, keep in mind that these are minor kitchen models — not a complete and total overhaul.
New Siding.
Believe it or not, new siding has an ROI of 83.9%, which makes sense if you think about it. No other feature can have as much impact on curb appeal. Cracked, old siding can actually decrease a home’s value by as much as 10%, while new, fresh siding can just as easily make a home more attractive to potential buyers.
New Front Doors.
The project with the highest ROI — 98% — is a new front door. Not only does it make a home more attractive the same way new siding does, it also makes a home more energy efficient, keeping the cold or hot air out better. Even better, it’s also one of the most affordable improvements homeowners can make, costing about $1,230 on average. This means that a new front door gives homeowners the biggest bang for their buck.
Although home additions like entirely new kitchens, bedrooms, or bathroom renovations would logically provide excellent ROIs, it’s actually smaller home additions and improvements that really give homeowners the biggest bang for their buck.
If you have any questions about which home additions and improvements provide the best ROI, feel free to ask in the comments.
