Home Improvement Projects with the Best ROI

Whether you’ve purchased a fixer-upper or are thinking about selling your home in the near future, it’s important to determine which renovations or upgrades can add value to your property.

Not all home projects are equal when it comes to earning you a return on investment (ROI). By consulting a Real Estate Professional, they can help you determine cost-effective upgrades that will help the property sell faster and for more money.

That echoes findings from a report by Remodeling magazine, which lists upgrades in terms of their ROI. Four of the top six projects were exterior projects. Only the minor kitchen remodel — a relatively modest indoor project among those covered — rivaled the return of exterior projects on list.

Top 6 renovations to increase your home’s value

  1. Stone Veneer: 95.6% ROI
    By adding manufactured stone to the lower third of a home’s front facade and extending it over the front entry for an estimated cost of $9,357, you could recoup $8,943 when you sell your home. 
  2. Garage Door: 94.5% ROI
    Replacing a garage door with an upscale model costs an estimated $3,695 and could earn you back $3,491. 
  3. Minor Kitchen Remodel: 77.6% ROI
    Installing new cabinet fronts and energy efficient appliances costs around $23,452 but adds $18,206 in value.
  4. Siding: 74.7% ROI
    It will cost about $14,359 to replace siding, but you may recoup $10,731 by doing so. 
  5. Windows: 72.3% ROI
    By spending an estimated $17,641 on new windows, you may recoup $12,761.
  6. Wood Deck: 72.1% ROI
    Adding a 16’ x 20’ wood deck costs about $14,360 and adds $10,355 in value.

While a typical home improvement project might return .60 -.75 on the dollar, some upgrades like putting in an in-ground swimming pool could return .50 or less – and might even turn off some buyers.

To understand which upgrades are most likely to provide a higher-than-normal ROI in your area, talk to a local real estate agent, contractor or home builder. These pros will know what buyers are looking for and which upgrades will help your house sell more quickly and for top dollar.

Source: My Home by Freddie Mac – Home Improvement Projects with the Best ROI, June 3, 2021

Financing Your Renovation

GMM offers cost-effective options for financing or refinancing home renovations, repairs or improvements. Contact us about the options available to you.

*This article is for general informational purposes only.


Related Articles

The Building and Financing Process

There are several important steps you should take to ensure a successful building and financing process.

Read More →

One-Time Close Construction Loans

One-Time Close Construction Loan Program   GMM’s One Time Close is available for New  Construction and Renovation projects. This program offers you the benefit of …

Read More →

What Is A Mortgage Recast?

You have probably heard of refinancing your mortgage as a way to potentially lower your monthly mortgage payments. There is also another possible option called …

Read More →

How Do Down Payment & Closing Cost Assistance Programs Work?

Who Can Receive Down Payment Assistance? While many down payment assistance programs are often paired with loan options for first-time homebuyers, this is not always …

Read More →
FHFA 2021 Announcement

FHFA Announces Conforming Loan Limits for 2022

Baseline Conforming Limit Will Increase to $647,200 FHFA Announces Conforming Loan Limits for 2022 | Federal Housing Finance Agency Washington, D.C. – The Federal Housing Finance …

Read More →

Home Inspections

Home inspections give you the opportunity to have the home thoroughly examined by a professional before you spend any money to purchase it. Paying for …

Read More →
Scroll to Top