Major remodeling projects can add to your home’s value, but in recent years, as the economy tanked, many homeowners cut back on remodeling expenses. Some home improvement forecasters, such as the folks over at the Harvard University’s Joint Center for Housing Studies, predict an upswing in projects this Spring, but people are still concerned about getting the most value from their remodeling bucks.
So if you are trying to decide which projects have the best return on investment, Remodeling Magazine has a list of projects it considers “midrange” in cost. According to them, the top home renovations in 2010-2011 that will add to your home’a value, include:
Major Kitchen Remodel
If you are tired of your current kitchen, you can do some hard work and have it remodeled. Remodeling Magazine estimates that a major remodel, on average, costs $58,367. You can see an increase in the resale value of your home by $40,126 if you do a major kitchen remodel. This is 68.7% of your cost. A major remodel usually includes replacing flooring, upgrading appliances, replacing most of the cabinets, and replacing countertops and sinks.
Basement Remodel
Re-do your basement, adding a family room or theater, changing the flooring, and maybe including a bathroom, or creating new bedrooms. You are likely to spend right around $64,519 and get back $45,186, or 70.0% of your expense.
Window Replacement (vinyl)
You could save money on heating on cooling if you replace your windows, so the returns are potentially bigger than what Remodeling Magazine suggests. Use vinyl with your window replacements, and you might spend $11,066. You’ll get back 71.6% – $7,920 – in re-sale value.
Attic Bedroom
Add another bedroom to your home, and you could increase the value of your home. Transform some of your storage space into a room upstairs, and you will spend around $51,428, and recoup about $37,142. That’s about 72.2% of your cost.
Window Replacement (wood)
Spring for wood as you replace your window, and you will pay a little bit more. But the insulating qualities of wood, not to mention the way it looks, can result in a better return on your money. You’ll get back an estimated 72.4% of your $12,027, resulting in a re-sale value that is $8,707 higher.
Siding Replacement (vinyl)
Improve the curb appeal of your home, and make it a little easier to care for with vinyl siding. Remodeling Magazine estimates that you will spend about $11,357 to do this. You will get about $8,223 back in re-sale value, which means you recoup 72.4%.
Minor Kitchen Remodel
You can actually get better value for your renovation buck if you do some minor kitchen remodeling, rather than going all the way. Spend $21,695 to do minor upgrades to your kitchen, and recover about 72.8% of the cost, or $15,790.
Deck Addition (wood)
Enjoy your yard more with a wood deck addition. You will also likely add $7,986 to the re-sale value of your home. That’s a 72.8% recovery rate for the $10,973 you are likely to spend.
Garage Door Replacement
Upgrade your garage door for $1,291 and recoup about $1,083 of that. That’s 83.9% of what you spend. It will make your home look better (especially if it matches your vinyl siding), and it will be easier for you to get in and out.
Entry Door Replacement (steel)
The most cost-effective home improvement you can make, according to Remodeling Magazine, is to replace your entry door. You will spend $1,218, but get a $1,243 bump in the re-sale value. That’s a recovery rate of 102.1%.
Photo: Brock Builders, Creative Commons 2.0
Miranda Marquit is a journalistically trained freelance writer and professional blogger. She contributes to several personal finance web sites, writing on topics such as budgeting, home loans and mortgages, and investing.
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Ready to get started on your home improvement project? Learn more about using home equity loans to finance your home improvements. Check out the LendingTree web site for information on how to pay for house improvements.
