4 home renovations with a high ROI
You can’t go wrong with home renovations proven to have a high return on investment.
Of course, it’s your house. You have the freedom to change and improve your home any way you’d like. But many homeowners appreciate knowing that their money is well spent—that the home renovations they’ve taken on might bring a return if they sell in the future.
We’ve gathered data from the 2023 Remodeling.com Cost vs. Value Report* to save you from putting your money into projects that won’t yield much back. And if you do choose a low-return project, at least you’ll be making a fully informed decision. The sacrifice might be worth it for that outdoor shower you’ve always wanted.
4 projects that won’t add much value when you sell
Low-return home renovations include:*
1. Additions.
Is it worth it to put in a bathroom or a master suite? It depends. Typically, the cost to build out can be high, without providing the equivalent return on the money you spend. The Cost vs. Value Report ranks a bathroom addition among lower-return home renovations, only recouping around 26 to 30 percent of the investment.*
2. Upscale remodels.
A fancy upgrade doesn’t necessarily a good investment make. While it can have great aesthetic appeal, the price tag on an upscale bathroom remodel may only yield around a 37 percent return.* An upscale kitchen remodel ranks even lower—again, because it’s hard to recoup the cost. But there’s still something to be said for personal enjoyment. Cooking in a luxury kitchen could be worth the price.
3. Accessible bathroom remodel.
For many homeowners, a bathroom with a universal design may be necessary. However, it ranks at the lower end of the scale for ROI. Making a bathroom wheelchair-accessible, replacing the tub with a walk-in shower, and installing accessible storage and similar features might net a 46 percent return.*
4. Home maintenance projects.
Seasonal maintenance is one of the responsibilities that comes with homeownership. Projects like updating a furnace or replacing a roof aren’t optional. When the time comes, they need to be done to keep your home in good shape. Roof replacement provides around a 50 to 60 percent ROI.*
With an Academy all-in-one Renovation Loan, you can buy or refinance a home and get extra money to renovate it, all in one loan—one application, one closing, and one monthly payment.
Contact your local Academy Loan Officer for details.
4 projects that give you a greater return on investment
High-return home renovations include:*
1. New garage door.
A garage door replacement is one of the few home renovations that may net you equal or more than what you put in—around 103 percent.* The good news is that it’s not the most expensive upgrade. Replacing your garage door may cost an average of $4,302, recouping around $4,418. A new garage door helps to improve the curb appeal of your house** and typically comes with a lifetime warranty.
2. Stone veneer.
Similarly, replacing vinyl siding with stone veneer is a fairly affordable project (comparatively speaking) that can net one of the highest returns. Installing manufactured stone veneer may cost an average of $10,925, providing a resale value of roughly $11,177. That’s a 102 percent return.*
3. Front door replacement.
Putting in a new front entry door could yield a return of around 101 percent.* Another advantage of this upgrade is its modest price tag, costing about $2,214. Something as simple as a new front door could boost your home’s value and help strengthen your home security.**
4. Minor kitchen remodel.
A minor kitchen update is one of the home renovations that comes to mind whenever you think of what to upgrade first. The kitchen is said to be the most important room in the house. It’s frequently used, and it’s a hub for socializing. A minor remodel, which includes replacing cabinet panels, drawer hardware, appliances, countertops, and flooring, could bring as much as an 86 percent return.*
For the most accurate information: Click into the Cost vs. Value Report and find where data is broken down by city. This will tell you how much the cost and ROI of a project may fluctuate based on your area. It can also be helpful to consult a real estate agent to see which home renovations local homebuyers are interested in.
Thinking about renovating but don’t have enough cash?
The average homeowner in the U.S. has over $300,000 in equity. Depending on how much equity you’ve gained, you could cash out to repair, add on, update, or renovate. Contact your local Academy Loan Officer to discuss your options.
All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. Please contact Academy Mortgage for more information. MAC2412-2180278.