Last summer, building materials had prices spike dramatically. Those prices have kept going up this year which makes improving your home more expensive. As a result it’s become more difficult to predict your return on investment (ROI). Your home value will not increase dollar for dollar with the costs you spend on projects the majority of time.
Here are some suggestions to get the greatest returns in home improvement projects.
• Adding a manufactured stone veneer on your house gives a predicted 94.9% ROI, with the average investment cost being $8,907 and returning $8,449 when reselling.
• Replacing the garage door will give you fresh curb appeal, costing $3,611 and selling for $3,520 giving a 97.5% ROI.
• Adding attic insulation can easily pay for itself. The national average shows that the job costs $1,268 with the resale value of $1,482, giving 117% ROI.
• Minor kitchen remodeling is like giving the kitchen a facelift. These projects, such as updating the floor or countertops, applying a fresh coat of paint, resurfacing kitchen cabinets, changing hardware etc., can earn more than 83% ROI. In average, the cost of a minor kitchen remodel is about $20,000.
• Deck building can recoup an average of 80% of the cost. Depending on the materials you use, the designs and etc. For the cost of a $10,000 new wood deck, you can expect to get back about $8,000.
On the other end of the spectrum, here are the lowest ROI projects that you should be aware of before starting.
• Backyard patio remodeling, with the average investment cost being $56,906 and only reselling for about $31,430 giving the lowest ROI of 55%.
• A master suite addition, costing $271,470 and giving back $136,820. The ROI yields at only 50%.
• Bathroom additions can also be a lower ROI investment with average cost of $42,233 and the resale value of $23,727 giving the ROI of 56%
Before starting the home makeover, some research on the cost and return on your investment will save you a lot of money and stress later.