As a Realtor, I’m always clearing up misconceptions about homes, and one misconception I talk about a lot is the value of home improvement projects. You may spend $15,000 on upgrading your home, but that does not mean you can list it for $15,000 more when it’s time to sell.
Very few home improvements offer a 100% return on your investment. That said, certain home improvement projects will net you much more than others, so let’s talk about what those are! This data is specific to the Indianapolis area, thanks to the folks at Remodeling magazine, who update this list of projects each year.
If you’re making decisions about home improvement projects, you can’t afford to miss this information.
Key Remodeling Trends for 2021
COVID-19 and the related supply chain and labor issues have wreaked havoc on the home remodeling industry. Global tariffs have caused additional problems. Plus, demand has been sky-high as people have been home more, and they’ve decided it’s time to make some changes. These factors have caused things like tile and sinks and appliances to sit in shipping containers around the world for weeks on end.
These issues have also caused the prices of materials for home improvement projects to increase across the board. Project costs have risen steadily since all the way back to 2014, but last year’s significant disruptions brought the biggest effects on cost. Of course, as the cost of doing a project goes up, the percentage of ROI must go down. This year, none of the projects are over a 100% ROI (last year, there were four).
However, there are still some good options if you’re looking to maximize your investment in your home.
1. Garage Door Replacement
A favorite on this list is a garage door replacement for your home, and this year, it’s the number one project by a longshot. This improvement will get you a whopping 98% of what you spent on it. This is an easy way to really increase your curb appeal, especially if your garage door is an old one.
You’ll want to install a new, four-section garage door on brand-new, heavy-duty steel tracks. You can use your existing motorized opener. The door should be high-tensile strength steel and have two coats of factory paint. You should also ensure that it has foam insulation with thermal seals and a lifetime warranty.
2. Manufactured Stone Veneer
Adding manufactured stone veneer to your home is a very smart move. This year, it will net you 95% of what you spend to get the job done. If you have a plain exterior, this is a way to add some pizazz and get an upgraded look with very little effort.
Just take a band of siding from the bottom third of your house’s street-facing façade. You’ll begin at the garage and go around the main entry. Replace that siding with manufactured stone veneer. Include new sills, corners, and an address block with two separate layers of water-resistant barrier underneath the veneer to protect your home.
3. Entry Door Replacement
An entry door replacement can make the front of your home look completely different. This home improvement project gets you back 89.5% of what you pay for it, so it’s well worth doing.
Remove the existing entry door and jambs and replace it with a new, 20-gauge steel door. It should have a clear, dual-pane half-glass panel, as well as new jambs, an aluminum threshold, and a composite doorstop. The door should be factory finished with the same color on both sides. Exterior brick-mold and interior colonial or ranch casings should be pre-finished to match the door color. Don’t forget a new lockset to make sure everything looks shiny and new.
4. Minor Kitchen Remodel
Most large discretionary projects, like kitchen, bath, and master suite remodels, don’t do that well on this list, but here’s an exception. A minor kitchen remodel will get you 87.7% of what you pay for it.
You may be surprised to know that a minor kitchen remodel actually gets you a substantially better return on your money than a major, expensive kitchen overhaul (which is 59.0%). A minor remodel can make a dated kitchen look entirely different, and honestly, a complete remodel might not even be necessary.
A minor remodel should include a few key upgrades. You can leave the existing cabinet boxes, but you should replace the fronts with new, shaker-style wood panels and drawer fronts. Don’t forget the new hardware! Replace the cooktop, oven range, and fridge with energy-efficient models, probably stainless steel. Replace countertops with laminate (there are a lot of really beautiful options these days that mimic real stone). Add a new mid-priced sink and faucet. Then you can repaint the trim and walls, and you’re done!
5. Wood Deck Addition
A wood deck addition comes in at 77.8%, while composite is a little lower at 70.9%. But . . . think about the cost and time of maintenance when you decide how to proceed. A composite deck addition may still be the way to go.
For this project, you’ll add a 16×20-foot deck that utilizes pressure-treated joists supported by 4x-inch posts that have been anchored to concrete piers. Pressure-treated deck boards can be installed in a linear pattern. You may want to include a built-in bench and planter made with the same material, plus steps and a complete railing system.
6. Vinyl Window Replacement
Vinyl window replacements can be an excellent choice for a home improvement project. It will make your home look entirely different and will net you 77.3% of what you spend.
Interestingly, a fiber-cement siding replacement doesn’t yield nearly as much (around 72.3%).
For this project, replace existing windows with double-hung, insulated, low-E vinyl windows. Use a custom color exterior finish. Trim the exterior to match the existing trim, and do not disturb the existing interior trim.
I hope this helps you decide what home improvement projects you’d like to tackle next, whether you’re planning to sell or are staying put. If you have any other questions about the value of home improvement projects on homes here in the Greater Lafayette area, leave me a comment, send me an email, or give me a call!
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