Highest ROI Projects

I am always being asked what projects a homeowner should undertake that will recoup the most bang for their buck. My reply is usually this - you can’t go wrong with curb appeal, kitchens and bathrooms. These projects can be full blown remodeling jobs or minor updates. But at the end of the day, it isn’t just about the resale value. It seems that there is always a flurry of home repairs and remodeling right before the home is to be listed. Once projects are completed the homeowners lament that everything looks so nice, why didn’t they do it earlier for them to enjoy. So while it is good to focus on projects that will recoup the highest ROI, you can’t place a $$ value on the quality of your life and enjoyment of your home…. That’s priceless.

1. Minor Bathroom Remodel

It costs about $10,500 to replace the tub, tile surround, floor, toilet, sink, vanity and fixtures. You’ll get back an average of $10,700 at resale, a recoup rate of 102 percent.

2. Landscaping

The average homeowner spends about $3,502 for landscaping and $1,465 on a designer, according to the American Nursery Landscape Association. Average return at resale is 100 percent.

3. Minor Kitchen Remodel

A minor kitchen remodel averages $14,913 for $14,691 at resale, a recoup rate of 98.5 percent. Do a minor remodel when your kitchen needs a cosmetic update and not a drastically different floor plan.

A $15,000 kitchen update covers 30 feet of re-facing for cabinets and drawers, a new wall oven, cooktop, sink and fixtures, laminate countertops and resilient flooring.

4. Exterior Improvements

Vinyl siding, paint, updated front entry - the average national cost to replace 1,250 sq. ft. of vinyl siding: $7,239. Average return: $6,914, with a recoup rate of 95.5 percent.

5. Attic Bedroom Conversion

The average attic bedroom in a two- or three-bedroom house costs $39,188 and returns $36,649 at resale or 93.5 percent.

The best recoup rate is in the West: 105 percent; worst is in the Midwest: 82 percent.

That price includes a 15 x 15 ft. bedroom, a 5 x 7 ft. bath with shower, a 15 ft. dormer, four windows and a closet.

6. Major Bathroom Remodel

A major bathroom remodel involves expanding an existing 5x7 ft. bathroom, relocating and replacing the tub and toilet and adding designer sinks and faucets, a linen closet, lighting, a ceramic tile floor and exhaust fan for a cost of $26,052, which brings in $24,286 at resale or 93.2 percent.

7. Major Kitchen Remodel

A complete kitchen remodel in a midrange home averages $43,862 and returns $39,920 at resale or 91 percent. That price buys 30 ft. of cabinets, an island, laminate countertops, stainless sink, wall oven, cook top, vinyl flooring and appliances.

If your home’s value rises and your kitchen’s finishes don’t, do a major remodel rather than small fix-ups. Budget 10 to 15 percent of your home’s value remodeling the kitchen.

8. Deck, Patio, or Porch Addition

Adding a 16x20 ft. pressure-treated wood deck with a simple pattern costs about $11,000. At resale, you’ll get about $10,000 of that back, a recoup rate of 90 percent.

Add eye-appeal with decorative planters on the front porch, patio and decks.

Give a courtyard an impressive entry with an inviting gate, lighting and mature plantings. Small improvements will have a big impact at closing.

Use bold plantings to emphasize features, or to distract the eye from flaws.

Run-down stairs lower your profit margin, so make sure porch railings are safe and attractive.

9. Basement Remodel

The average basement remodel costs just over $51,051 and returns $46,010, so you’ll recoup about 90 percent of the cost.

What do you get for $51,051? A 20 x 30 entertaining area with wet bar, a 5x8 bath, recessed lighting and a laminate floor.

Remember when finishing walls, you should keep your drywall panels a half-inch away from concrete floors, so they don’t absorb moisture.

Always fix flooding problems first. Add French drains, bigger gutters or re-slope the yard to keep water out. Test to make sure the fixes work before investing time or materials in a basement.

Want just the wet bar? Buy 10 linear feet of cabinets, a laminate countertop, a stainless steel drop-in bar sink and an under-counter refrigerator for about $2,500.

Cover concrete floors with an easy-to-install modular subfloor so floors won’t be cold. Add carpet squares with a traction backing for an amazing transformation.

10. Replacement Windows

Replacing ten 3x5 ft. windows runs about $9,700. On average nationally, you’ll get back $8,700 when you sell, a recoup rate of nearly 90 percent.

11. Family Room Addition

The average family room addition costs $54,464 and adds $45,458 at resale, a recoup rate of 83 percent.

12. Bonus Room Updates

Converting a 12x12 ft. bonus room into a home office costs on average $13,143 and brings in $9,569 at closing or 72.8 percent.

If you’re selling, know your target market and decorate to please them. Families use bonus rooms differently than empty-nesters and singles.

13. Living Room Updates - Decor

It costs around $1,350 for staging and updating living room decor with new light switches, outlet covers, floor registers, crown molding, chair rails and drapes, plus fresh flowers and accessories; an average return at resale of 66 percent.

Details add dollars. Crown molding gives a room a crisp, clean finish that buyers love. Choose molding that complements window trim and floorboards. Prices start at around $1.40 per linear foot.

Shift furniture away from the walls to make living rooms feel larger and more contemporary. Create a seating area around a feature you want buyers to notice, like a dramatic fireplace.

If you’re staging your home to sell, don’t move excess furniture and clutter into the garage. Rent a storage unit for about $1 per square foot per month.

New window treatments are a cost-conscious way to add a punch of designer color. For low ceilings, create the illusion of height by positioning drapes and valances higher on the wall.

14. Bedroom Updates

Cost for new lighting will vary from $100 - $500.

For a romantic design touch, swap the old light fixture for a small chandelier. The formula for sizing a chandelier: Room width + Room length in feet - chandelier diameter in inches.

When doing dry wall repair, less really is more. Using as little joint compound as possible makes it easier to even out the surface when sanding later.

Scale your window treatments to your room size. Cost to rent wallpaper steamer: $20; new bedding and window treatments: $300.

Hardwood floors are hotter than ever. Pull up worn carpeting and refinish old floors to let the wood shine. Sanding hardwoods is physically demanding and if you do it wrong, you ruin the floor. Hire a pro to do the sanding and then do your own staining and sealing to save money. Cost $1 to $1.50 a foot. Fill carpet tack holes with Color Putty.

Overall average return at resale is 52 percent.

15. Living Room Updates - Walls and Floors

For only $25, freshen the living room walls with a coat of paint in a light, neutral color. And don't overlook the trim — brighten it with a high-gloss white paint and caulk any open seams between the molding and ceiling and baseboard and wall.

On average, quality hardwood flooring ranges from $3-$8 per square foot. For a 200 square foot area, expect to spend about $1,200 if you install it yourself. Tack on another $3 per square foot if you have it professionally installed.

Sanding hardwoods is physically demanding. Make a mistake and you ruin the floor. Hire a pro to sand and then do your own staining and sealing to save money. Cost is $1 to $1.50 a foot. Fill carpet tack holes with Color Putty®.

If you have carpet in the living room, either have it professionally cleaned ($100-$150) or replaced if it's torn, stained or has an unrelenting odor (on average $10-$30 per square foot).

Always test popcorn ceilings for asbestos before you start (find an accredited lab at The National Institute of Standards and Technology. Asbestos was used in textured paints manufactured before 1977.

Buy a new wood or stone mantel for as little as $500.

Overall average return at resale is 40 percent.

Want Another Opinion?

As a local real estate professional, I'd be happy to view your space and give you more customized feedback. Feel to reach out.

NOTE: ROI values and remodeling costs are subject to change and may not reflect your remodeling costs. This article and the estimates were adapted from the original.

Source: HGTV's Top 15 Home Updates That Pay Off