People are often surprised to learn that home improvement projects are not equal when it comes to how much of a return you can expect to get on your investment. It’s nearly always less than 100% of the amount you spend on the improvement, though there are a few exceptions.
That said, certain home improvement projects will net you much more than others. I’m here to break down which ones will give you the best return on your investment. And this data is specific to the Indianapolis area, thanks to the folks at Remodeling magazine, who share this region-specific data each year.
If you’re doing home improvement projects in 2020, you can’t afford to miss this information when making decisions about what to do and how much to spend.
Key Remodeling Trends for 2020
The 2020 report shows a predictable increase in costs for all of the projects. However, this year, there’s also a drop in the perceived value of the improvements. There’s a slight downturn in the return for nearly all of the projects across the board.
This is likely because of jittery consumers, who are beginning to feel a bit concerned about the economy. The good news is that although remodeling activity is growing at a slower rate than in the past few years, it is still continuing to grow.
Of course, all of this data came out before the COVID-19 pandemic, so take all of that with a grain of salt. Things are changing quickly!
1. Manufactured Stone Veneer
Adding manufactured stone veneer to your home is a very smart move. This year, it will net you 128.1% of what you spend to get the job done.
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.
2. Garage Door Replacement
A perennial 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 106.4% of what you spent on it. That’s a pretty unheard-of return on your investment!
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.
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 104.2% 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. Wood Deck Addition
Who doesn’t want a brand-new deck? And at an 102.5% return on your investment, this is a smart improvement that also makes your backyard more versatile. (Note that a composite deck is worth less at 86.9%.)
You’ll add a 16X20-foot deck with pressure-treated joists and boards. You should also include some extras, like a built-in bench and a planter made from the same material as the deck. You’ll also want stairs and a complete railing system made out of the same material.
5. Minor Kitchen Remodel
We’re out of projects that net you more than your investment, but there are some other projects that come pretty close to a full return on your investment. A minor kitchen remodel will get you 93.8% 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 53.9%). 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!
6. Midrange Bathroom Remodel
Next, we have a midrange bath remodel coming in at 93.3%. A midrange bath remodel is has a substantially better return than a luxury remodel when it comes to a return on your money. An upscale bathroom remodel comes in at 69.4%.
For this project, upgrade the bathroom by replacing all its fixtures. Include a porcelain-on-steel tub with ceramic tile surrounding it. You’ll also need a new single-lever temperature and a pressure-balanced shower control. The toilet can be a standard white one, and you’ll need a solid-surface vanity counter with an integrated sink and a medicine cabinet with a light. This remodel should also include new ceramic floor tiles and vinyl wallpaper.
7. Siding Replacement
A vinyl siding replacement can be an excellent choice for a home improvement project. It will make your home look entirely different and will net you 90.2% of what you spend.
Interestingly, a fiber-cement siding replacement doesn’t yield nearly as much (around 80.5%).
For this project, replace all existing siding with new vinyl siding. Don’t forget to include factory trim at all openings and corners.
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, please give me a call.
Leave a Reply