Return on Investment: Common Home Improvements
We are often asked by homeowners what are one or two things that I can do to my house that will give me the best “bang for my buck”or Return on Investment (ROI).
Spoiler: Upgrade your exterior! Specifically, a New Garage Door gets the best ROI, the second best is adding a Stone Veneer to the front. More details follow.
Before we get to the figures, a little bit of clarification is required. These numbers are based on the most recent data we could find. Specifically, this is for the South-East Region of the U.S. in 2019 and was compiled by remodeling.hw.net.
Now the reason you’re here, the numbers: Ranked Best-to-Worst ROI. *The high-end of ROI was used for rankings.*
1. Upscale Garage Door Replacement- ROI 86.1%-97.5%
Cost: $3,541-$3,611 Resale Value:$3,051-$3,520
Work: Replacing old door and tracks with new tracks and “upscale door” complete with windows and 4-door “carriage-house” look. The old door opener would be retained and re-used.
2. Manufactured-Stone Veneer- ROI: 91.4%-94.9%
Cost: $8,524-$8,907 Resale Value: $7,789-$8,449
Work: Remove lower 1/3 of existing siding and replace with manufactured stone veneer. Also, outline entry/archway with same stone top-to-bottom.
3. Mid-Range Kitchen Remodel- ROI: 82.8%-80.5%
Cost: $21,440-$22,507 Resale Value: $17,754-$18,123
Work: In 200 sqft kitchen, replace cabinet doors with shaker-style, drawer fronts to match, new cabinet/drawer hardware, new cooktop/range and refrigerator, replace laminate counter-tops, install new mid-priced sink and faucet, new resilient flooring. Paint walls, trim and ceiling.
4. Mid-Range Siding Replacement- ROI: 70.5%-75.6%
Cost:$15,120-$16,036 Resale Value: $10,665-$12,119
Work: Replace existing siding with new version of the same.
5. Deck Addition (Wood)- ROI: 74.8%-75.6%
Cost: $12,047-$13,333 Resale Value: $9,011-$10,083
Work: Add 16×20 wood deck, planter, handrail and stairs to ground. All using pressure treated lumber.
6. Mid-Range Steel Entry Door Replacement- ROI: 75.8%-74.9%
Cost: $1,758-$1,826 Resale Value: $1,332-$1,368
Work: Replace existing entry door with steel door, new door to include large window and new hardware.
7. Window Replacement (Vinyl)- ROI: 72.3%-73.4%
Cost: $16,289-$16,802 Resale Value: $11,784-$12,332
Work: Replace 10 existing windows with vinyl, double hung, low-e windows. Leave interior trim in place, replace exterior trim to match.
8. Grand Entrance Door (Fiberglass)- ROI: 66.2%-71.9%
Cost: $8,753-$8,994 Resale Value: $5,794-$6,469
Work: Remove existing entrance door, re-frame opening to accommodate new larger door with windows on either side. New trim to match.
9. Window Replacement (Wood)- ROI: 68%-70.8%
Cost: $19,849-$20,526 Resale Value: $13,505-$14,530
Work: Replace 10 existing windows with wood framed, double hung, low-e windows. Leave exterior trim in place, replace interior trim with matching wood trim.
10. Deck Addition (Composite)- ROI: 65.3%-69.1%
Cost: $18,060-$19,150 Resale Value: $11,793-$13,232
Work: Add 16×20 composite deck (supports will need to be pressure treated wood), planter, handrail and stairs to ground. All using the same composite material.
11. New Roof (Asphalt Shingles)- ROI: 67.5%-68.2%
Cost: $21,012-$22,636 Resale Value: $14,183-$15,427
Work: Remove and Dispose of existing roof down to wood sheathing, Install 30 squares of new, 25-year minimum, Asphalt architectural shingles, aluminum flashing, and cap at vented ridge.
12. Bathroom Remodel (Mid-Range)- ROI: 67.3%-67.2%
Cost: $18,981-$20,420 Resale Value: $12,771-$13,717
Work: Update existing 5×7-foot bathroom. Replace all fixtures, including existing tub, 4×4-inch ceramic tile surround; new shower control; standard white toilet; solid-surface vanity counter with sink; ceramic tile floor; vinyl wallpaper.
13. Major Kitchen Remodel (Mid-Range)- ROI: 63.3%-62.1%
Cost: $63,387-$66,196 Resale Value: $40,094-$41,133
Work: New Cabinets, Island, Laminate counter-tops, Double basin sink, new range, vent hood, built-in microwave, dishwasher, garbage disposal, custom lighting, new flooring, fresh paint on walls, trim and ceiling.
14. New Roof (Metal)- ROI: 61.3%-60.9%
Cost: $35,759-$38,600 Resale Value: $21,918-$23,526
Work: Assuming rectangular hip roof. Install 3,000 square feet of pre-finished, standing-seam metal roofing with matching preformed accessories, including drip edge, gable trim, and vented ridge flashing. Some will recommend removing old roof, others recommend installing new roof over top of existing.
15. Adding a Bathroom (Mid-Range)- ROI 62%-60.6%
Cost: $43,817-$47,427 Resale Value: $27,149-$28,726
Work: Add 6×8-foot bathroom. Use cultured-stone vanity top with molded sink; standard chrome faucets; white fiberglass tub/shower with ceramic tile surround; single-lever faucet; white low-profile toilet; lighting; electrical wiring to code; mirrored medicine cabinet; linen storage closet or cabinet; painted trim; ceramic tile floor.
16. Bathroom Remodel (Upscale)- ROI 60.8%-60.2%
Cost: $61,063-$64,743 Resale Value: $37,130-$38,952
Work: Expand existing 35-square-foot bathroom to 100 sf within existing house footprint. Relocate all fixtures. Include 42×42-inch shower with ceramic tile walls with accent strip, recessed shower caddy, body-spray fixtures, and frameless glass enclosure. Include freestanding soaker tub with high-end faucets; stone countertop with two sinks; two mirrored medicine cabinets with lighting; a compartmentalized commode area with one-piece toilet; and a humidistat-controlled exhaust fan. Use all color fixtures. Use larger matching ceramic tiles on the floor, laid on diagonal with ceramic tile base molding. Add general and spot lighting including waterproof shower fixture. Cabinetry has custom drawer base, wall cabinets. Extend HVAC.
17. Major Kitchen Remodel (Upscale)- ROI: 65.5%-59.7%
Cost: $126,307-$131,510 Resale Value: $82,887-$78,524
Work: Update outmoded 200-square-foot kitchen with 30 linear feet of top-of-the-line custom white cabinets with built-in sliding shelves and other interior accessories. Include stone countertops with imported ceramic- or glass-tile backsplash; built-in refrigerator, commercial-grade cooktop and vent hood, wall oven, and built-in microwave unit. Install high-end under-mount sink with designer faucets and water filtration system. Add new lighting, including low-voltage under-cabinet lights. Install tile or similar wood look flooring.
18. Master Suite Addition (Mid-Range)- ROI: 59.4%-59.4%
Cost: $121,799-$130,986 Resale Value: $72,388-$77,785
Work: Add 24×16-foot master bedroom suite off of existing house. Include walk-in closet/dressing area, freestanding soaker tub, separate 3×4- foot ceramic tile shower, and double-bowl vanity with solid-surface countertop. Carpet the bedroom floor; put tile in bath. Paint walls, ceiling, and trim. Install general and spot lighting, exhaust fan.
19. Adding a Bathroom (Upscale)- ROI: 58.3%-58.1%
Cost: $82,033-$87,704 Resale Value: $47,820-$51,000
Work: Add new 100-square-foot master bath to existing master bedroom. Include 42×42-inch shower with ceramic tile walls, accent strip, recessed shower caddy, body-spray fixtures, and frameless glass enclosure. Put in freestanding soaker tub with high-end faucets; stone countertop with two sinks; two mirrored medicine cabinets with lighting; a compartmentalized commode area with one-piece toilet; and a humidistat-controlled exhaust fan. Use larger matching ceramic tiles on the floor, laid on diagonal with ceramic tile base molding. Add general and spot lighting and waterproof shower fixture. Cabinetry has custom drawer base, wall cabinets. Extend HVAC.
20. Backyard Patio (Mid-Range)- ROI: 54.4%-55.2%
Cost: $54,161-$56,906 Resale Value: $29,445-$31,430
Work: Install 20×20-foot flagstone patio on flat ground behind home. Connect house and patio via sliding glass door. Put gas-powered fire pit in the center of the patio and surround it with four mid-priced, all-weather deck chairs. Opposite home, install stone veneer modular kitchen unit with gas grill, mini-refrigerator, sink, and storage. On each corner, erect 20×20-foot cedar pergola capable of holding an awning that can shade the flagstone area. Install mid-priced, low-voltage lights on pergola sufficient to illuminate patio at night. Install underground gas and electrical connections.
21. Master Suite Addition (Upscale)- ROI: 51.6%-50.4%
Cost: $253,821- $271,470 Resale Value: $131,035-$136,820
Work: Add 32×20-foot master bedroom suite off of existing house. Add spacious sleeping area with lounging/sitting area adjacent to large master bath. Include custom bookcases and built-in storage with millwork details; high-end gas fireplace with stone hearth and custom mantle; and walk-in closet/dressing area with natural light, mirrors, and linen storage. Add French doors. Bathroom includes walk-in shower with dual-shower system, stone walls and floor, and custom frameless glass enclosure. Add freestanding soaker tub. Include two sinks in separate custom vanities with stone countertops and large mirrors. Create partitioned area for luxury one-piece toilet. Outside the bath, add 5-foot-long hospitality center with bar sink, under-counter refrigerator, custom cabinetry, stone countertop, and microwave. Include soundproofing, in-floor heating, custom wall finishes and hardware, general and spot lighting, and high-end lighting controls.
Keep in mind, some of these costs are eye-popping. The scale and finish must work with the existing house in style, size and finish. The most important thing to note is the ROI figure. No matter what you spend this gives you a general idea of what you can expect to re-coup. Also, if a house is clearly missing something, you might be able to get a better return because it the home’s value was suffering before. These are regional figures and might differ slightly from your specific area. Different neighborhoods and areas of town will have slightly different results.
