Improving your home can be a smart way to increase its value. Research from Scarborough reveals that 53% of U.S. homeowners have made some type of home improvement in the past 12 months, 56% of whom spent more than $1,000 on the projects. Similar research from Houzz shows 83% of home additions and improvements made in 2012 were done to improve home’s looks and feel, which would naturally improve its property value.
However, not all home additions and improvements are created equal.
Every year, the trade publication Remodeling Magazine ranks all of the possible home additions and projects contractors do in terms of the return on investment they provide. Here are a few of what they consider to be the best and worst home additions out there.
The Best:
Wooden Deck Additions.
Wooden decks top the list of home additions with the best return on investment (ROI). Costing an average of just $9,539, these home remodeling projects provide a whopping ROI of 87.4%.
Siding Replacement.
Believe it or not, replacing the siding is one of the best things homeowners can do when remodeling a house. It usually costs about $13,378 for home additions contractors to replace 1,250 square feet of siding, but the project has a nice ROI of 87%.
Attic Bedrooms.
Adding attic bedrooms is one of the best custom home remodels out there. Costing an average of $49,438, turning an unused attic into a 15-by-15 bedroom with a 5-by-7 bathroom has an ROI of 84.3%.
The Worst:
Home Office Remodel.
Home office remodels are, unfortunately, some of the worst home additions people can make, with an ROI of just 48.9%.
Sun Room Additions.
Sun room additions cost about $73,546, and only provide an average ROI of 51.7%.
Master Suite Additions.
Since it’s like adding a small apartment on to a home, suite additions cost a shocking average of over $200,000. Though it’d be logical to think that these home additions would vastly improve a house’s value, they only provide an ROI of 56%.
If you have any questions about the ROI of a remodeling project, feel free to share in the comments.
