Which Home Remodeling Project Has The Highest ROI

The top five home remodel projects that will bring in the most money or recoup your investment were a surprise to me. My assumption was kitchen, bathrooms or room additions. But when looking at the return on investment the costs to remodel a kitchen or bathroom can get expensive and does not necessarily mean that you will get your money back.

Home remodels are undertaken because the home owner wants to enjoy the new look that can be experienced from the latest decorating trends. Home remodeling is not something that gets done every five years, like painting the interior might. Homes that are twenty to thirty years are good candidates for a remodel, especially if you plan to sell at some time in the future.

Kitchen remodels can be both major or minor. Major projects probably entail a complete makeover such as changing the layout of the kitchen, adding a center island counter, increasing the storage space, installing high end appliances and more. I have seen some incredible remodels in kitchens that it is almost hard to remember what the old kitchen looked like.

A minor kitchen remodel generally keeps the layout the same but upgrades the counters, replace or resurface cabinets, new floor and the latest style of appliances. A kitchen return on investment can range from 68.7percent to 72.8 percent.

Replacing the front door to enhance the exterior will net you 102.1%. If planning to put your home on the market be sure to check the appeal of the front door. This is what buyers see first and stare at while waiting to enter the home.

Another item with a high return is garage doors at 83.9 percent. Again this is an enhancement to the exterior and improves the curb appeal. The exterior of the home should be inviting so that would be buyers don’t just drive by.

Bathrooms weigh in at 64.1 percent, home office 45.8 percent and a finished basement at 70 percent.

Remodeled and updated homes sell faster and generally for list price (if priced at market value).

The above information was prepared by Remodel Magazine, who received 3000 responses from a national survey sent to appraisers, real estate agents and brokers. Keep in mind these are national averages and costs to remodel a home will differ by region and state.